Division 66 – Second hand goods
66.1 What this Division is about
Subdivision 66A – Input tax credits for acquiring second hand goods
66.5 Creditable acquisitions of second hand goods
Cases
Confidential and Commissioner of Taxation [2012] AATA 407 and Confidential and Commissioner of Taxation [2012] AATA 408 – applicant did not establish that the acquisitions of aircraft were for the purposes of sale or exchange in the ordinary course of business as well as for the purpose of leasing
Leaseplan Australia Limited v Commissioner of Taxtion [2009] FCA 1309 – applicant entitled to credits because the evidence established that the acquisitions of motor vehicles were made in the ordinary course of business for a dual purpose of lease and sale – at [22]: both parties accepted that neither a sole purpose test nor a dominant purpose test applies for the purpose of s 66-5(1) of the GST Act, but rather the test is whether the sale was ‘a purpose’ for which the vehicles are acquired. In other words, there may be another purpose of the acquisition other than sale, but the words of s 66-5(1) would still be satisfied if a purpose was sale
Rulings and Determinations
GSTD 2013/2 ‘Goods and services tax: when are second hand goods acquired for the purpose of sale in the ordinary course of business under Division 66 of the A New Tax System (Goods and Services Tax) Act 1999
66.10 Amounts of input tax credits for creditable acquisitions of second hand goods
Automotive Invest Pty Limited v Commissioner of Taxation [2023] FCAFC 129 – luxury car tax – goods and services tax – appeal from decision of primary judge which held that cars were used and intended to be used for a purpose in addition to being held as trading stock – where cars exhibited in “Gosford Classic Car Museum” – where cars were generally available for sale and were trading stock – whether cars were used or intended to be used as trading stock “and for no other purpose”
66.15 Attributing input tax credits for creditable acquisitions of second hand goods
66.17 Records of creditable acquisitions of second hand goods
Cases
VCF and Commissioner of Taxation [2008] AATA 731 – at [39]: the requirement in s 66-17 assumes the provision of accurate identity information and in order to qualify for credits under Division 66 the entity must comply with the requirement of obtaining identity information
Subdivision 66B – Acquisitions of second hand goods that are divided for re-supply
66.40 Acquisitions of second hand goods that can be used to offset GST on future re-supplies
66.45 Future re-supplies that are not taxable supplies
66.50 Future re-supplies on which GST is reduced
66.55 Records of acquisitions of second hand goods to which this Subdivision applied
66.60 Input tax credits for acquiring second hand goods the supply of which is not fully taxable
66.65 Total Subdivision 66-B credit amounts and Subdivision 66-B GST amounts
66.70 Commissioner may determine rules for applying this Subdivision
Division 69 – Non-deductible expenses
69.1 What this Division is about
Subdivision 69A – Non-deductible expenses generally
69.5 Non-deductible expenses do not give rise to creditable acquisitions or creditable importations
Cases
Melbourne Car Shop Pty Ltd v Commissioner of Taxation [2010] FCA 373 – the applicant did not satisfy s69-10(1)(b) as it did not acquire the vehicle with the intention of holding it as trading stock – whether the purpose was to hold the car for sale or exchange and to do so in the ordinary course of its trade
Subdivision 69B – Elections for GST purposes relating to meal entertainment and entertainment facilities
69.15 What this Subdivision is about
69.20 Effect of elections on net amounts
69.25 Election to use the 50/50 split method for meal entertainment
69.30 Election to use the 12 week register method for meal entertainment
69.35 Election to use the 50/50 split method for entertainment facilities
69.40 When elections take effect
69.45 When elections cease to have effect
69.50 Adjustment events relating to elections
69.55 Adjustment notes not required
Division 70 – Financial supplies
70.1 What this Division is about
70.5 Acquisitions that attract the reduced credit
70.10 Extended meaning of creditable purpose
70.15 How much are the reduced input tax credits?
70.20 Extent of creditable purpose
70.25 Sale of reduced credit acquisitions (Division 132)
Division 71 – Fringe benefits provided by input taxed suppliers
71.1 What this Division is about
71.5 Acquisitions by input taxed suppliers to provide fringe benefits
71.10 Importations by input taxed suppliers to provide fringe benefits
Division 72 – Associates
72.1 What this Division is about
Subdivision 72A – Supplies without consideration
72.5 Taxable supplies without consideration
72.10 The value of taxable supplies without consideration
72.15 Attributing the GST to tax periods
72.20 Supplies and acquisitions that would otherwise be sales etc
72.25 Supplies that would otherwise be GST-free, input taxed or financial supplies
Subdivision 72B – Acquisitions without consideration
72.40 Creditable acquisitions without consideration
72.45 The amount of the input tax credit
72.50 Attributing the input tax credit to tax periods
Subdivision 72C – Supplies for inadequate consideration
72.70 The value of taxable supplies for inadequate consideration
Subdivision 72D – Application of this Division to certain sub-entities
72.95 Commonwealth government entities
72.100 State or Territory government entities
Division 75 – Sale
75.1 What this Division is about
Cases
Sterling Guardian Pty Limited v Commissioner of Taxation [2006] FCAFC 12 – at [16]: Division 75 is directed towards developers who purchase land from private owners and would otherwise be required to pay GST on the entire value of the land
Brady King Pty Ltd v Commissioner of Taxation [2008] FCAFC 118 – at [8]-[9]: the margin scheme is directed towards developers who acquire land from private owners and are therefore not entitled to input tax credits on the cost of the land – another potential unfairness arises if the property was acquired by the taxpayer before 1 July 2000 as it is a fundamental feature that the GST only taxes value after 30 June 2000
75.5 Applying the margin scheme
Cases
Cyonara Snowfox Pty Ltd v Commissioner of Taxation [2012] FCAFC 177 – (prior to amendments in 2005) the choice to use the margin scheme must be made before the day of supply – tribunal [2011] AATA 124
Sterling Guardian Pty Limited v Commissioner of Taxation [2006] FCAFC 12 – at [21]: the forms of “real property” in s 75-5(1)(a),(b) and (c) are narrower than the extended definition of “real property” in s 195, therefore what is acquired is not “real property” in the broad s 195-1 sense, which would include bricks and mortar of structures that are affixed to the land, but a subset of that concept, namely the juridical concept or intangible legal interest of the three kinds indicated
75.10 The amount of GST on taxable supplies
Cases
Commissioner of Taxation v Landcom [2022] FCAFC 204 – appeal from decision of primary judge setting aside objection decision – objection to private ruling – where single contract of sale concerned the sale of freehold interests in four lots of land – whether sale would be a single “supply” of land for the purpose of calculating the “margin” in s 75-10 of the A New Tax System (Goods and Services Tax) Act 1999 (Cth)
Decleah Investments Pty Ltd as Trustee for the PRS Unit Trust and Commissioner of Taxation [2021] AATA 4821 – remission of matter by Federal Court on appeal – calculation of GST payable under margin scheme – valuation on an as is basis using hindsight information – approved valuation for the purposes of GST Act – taxation shortfall – administrative penalties – Federal Court appeal – Decleah Investments Pty Ltd and Prince Removal and Storage Pty Ltd as Trustees for the PRS Unit Trust v Commissioner of Taxation [2018] FCA 717 – First instance – Decleah Investments Pty Ltd and Anor as Trustee for the PRS Unit Trust and Commissioner of Taxation [2017] AATA 2418
WYPF and Commissioner of Taxation [2021] AATA 3050 –margin scheme – whether construction of apartments is non-monetary consideration for acquisition of 99-year leases from Australian Capital Territory development authority – whether excess GST passed on – held building works not consideration for acquisition of leases – held excess GST not passed on
Brady King Pty Ltd v Commissioner of Taxation [2008] FCAFC 118 – for the purposes of items 1 and 3 of the table under s 75-10(3) the taxpayer “held” or “acquired” the necessary interest in strata units before 1 July 2000 where the taxpayer acquired an en globe site before 1 July 2000 and developed the site into stratum units after that date – there does not have to be a strict identity in juridical terms between what the taxpayer acquired and what the taxpayer supplied – at [27]-[30]: the taxpayer “held” or “acquired” the necessary interest even though it held that interest as purchaser under a contract of sale which did not complete until after 1 July 2000 – at [38]: (referring to Reliance Carpet) the breadth of the statutory definition of “real property” supports the conclusion that when the appellant entered into the contract on 22 May 2000 it acquired or held something that was an inextricable part of the interest which it sold after 1 July 2000
Sterling Guardian Pty Limited v Commissioner of Taxation [2006] FCAFC 12 – for the purposes of calculating the margin in s 75-10(2) the consideration for the taxpayer’s acquisition of stratum units subsequently constructed on an englobo land parcel of land includes only a proportion of the land cost and does not include the construction costs
Rulings and Determinations
GSTR 2009/2 – Austlii – Goods and services tax: partitioning of land
GSTR 2009/1– Austlii – Goods and services tax: general law partnerships and the margin scheme
GSTR 2006/8 – Austlii – Goods and services tax: the margin scheme for supplies of real property acquired on or after 1 July 2000
GSTR 2006/7 – Austlii – Goods and services tax: how the margin scheme applies to a supply of real property made on or after 1 December 2005 that was acquired or held before 1 July 2000
GSTR 2006/6 – Austlii – Goods and services tax: improvements on the land for the purposes of Subdivision 38-N and Division 75
GSTR 2006/5 – Austlii – Goods and services tax: meaning of ‘Commonwealth, a State or a Territory’
GSTD 2006/4 – Austlii – Goods and services tax: government entities and the margin scheme – does item 4 in the table in subsection 75-10(3) apply if real property was vested for no consideration in a government department or agency on or after 1 July 2000 but was eld by another department or agency of the Commonwealth or the same State or Territory since before 1 July 2000
GSTR 2000/21 – Austlii – Goods and services tax: the margin scheme for supplies of real property held prior to 1 July 2000
75.11 Margins for supplies of real property in particular circumstances
75.12 Working out margins to take into account failure to pay full consideration
75.13 Working out margins to take into account supplies to associates
75.14 Consideration for acquisition of real property not to include costs of improvements etc
75.15 Subdivided real property
75.16 Margins for supplies of real property acquired through several acquisitions
75.20 Supplies under a margin scheme do not give rise to creditable acquisitions
75.22 Increasing adjustment relating to input tax credit entitlement
75.25 Adjustments relating to bad debts
75.27 Decreasing adjustment for later payment of consideration
75.30 Tax invoices not required for supplies of real property under the margin scheme
Division 78 – Insurance
78.1 What this Division is about
Subdivision 78A – Insurers
78.5 GST on insurance premiums is exclusive of stamp duty
78.10 Decreasing adjustments for settlements of insurance claims
78.15 How to work out the decreasing adjustments
78.18 Increasing adjustments for payments of excess under insurance policies
78.20 Settlements of insurance claims do not give rise to creditable acquisitions
Cases
Mattress Innovations Pty Ltd v Suncorp Metway Insurance Limited [2013] QCA 377 – upon the proper construction of the insurance contract the insurer was not entitled to reduce the amount payable to the insured by 1/11th on account of input tax credits to which the insured may be entitled
Rulings and Determinations
GSTD 2011/1 – Goods and services tax: is an ex gratia payment by an insurer in response to a claim under an insurance policy a payment made ‘in settlement of a claim’?
GSTR 2006/10 – Austlii – Goods and services tax: insurance settlements and entitlements to input tax credits
78.25 Supplies in settlement of claims are not taxable supplies
78.30 Acquisitions by insurers in the course of settling claims under non-taxable policies
78.35 Taxable supplies relating to rights of subrogation
78.40 Adjustment events relating to decreasing adjustments under this Division
78.42 Adjustment events relating to increasing adjustments under section 78-18
Subdivision 78B – Insured entities etc
78.45 Settlement of insurance claims do not give rise to taxable supplies
78.55 Payments of excess under insurance policies are not consideration for supplies
78.60 Supplies of goods to insurers in the course of settling claims
Subdivision 78C – Third parties
78.65 Payments etc to third parties by insurers
78.70 Payments etc to third parties by insured entities
78.75 Creditable acquisitions relating to rights of subrogation
Subdivision 78D – Insured entities that are not registered etc
Subdivision 78E – Statutory compensation schemes
78.95 GST on premiums etc under statutory compensation schemes is exclusive of stamp duty
78.100 Settlements of claims for compensation under statutory compensation schemes
78.105 Meaning of statutory compensation scheme
Subdivision 78F – Miscellaneous
78.110 Effect of judgments and court orders
78.115 Exclusion of certain Commonwealth, State or Territory insurance schemes
Division 79 – Compulsory third party schemes
79.1 What this Division is about
Subdivision 79A – Modified application of Division 78 to certain compulsory third party schemes and supplies under insurance policies
Subdivision 79B – Extension of Division 78 to cover certain compulsory third party scheme payments and supplies connected with, but not under, insurance policies
79.25 Meaning of CPT hybrid payment or supply
79.30 Application of Division 78
Subdivision 79C – Other payments and supplies under compulsory third party schemes
79.35 Meaning of CTP compensation or ancillary payment or supply etc
79.40 GST on CTP premiums is exclusive of stamp duty
79.45 Exclusion of certain compulsory third party schemes
79.50 Decreasing adjustments for CTP compensation or ancillary payments or supply
79.55 Increasing adjustments for payments of excess etc under compulsory third party schemes
79.60 Effect of settlements and payments under compulsory third party schemes
79.65 Taxable supplies relating to recovery by operators of compulsory third party schemes
79.75 Adjustment events relating to increasing adjustments under section 79-55
79.80 Payments of excess under compulsory third party schemes are not consideration for supplies
79.85 Supplies of goods to operators in the course of settling claims
79.90 Effect of judgments and court orders
Subdivision 79D – Compulsory third party scheme deceasing adjustments worked out using average input tax credit fraction
79.95 How to work out decreasing adjustments using the applicable average input tax credit fraction
79.100 Meaning of average input tax credit fraction
Division 80 – Settlement sharing arrangements
80.1 What this Division is about
Subdivision 80A – Insurance policy settlement sharing arrangements
80.5 Meaning of insurance policy settlement sharing arrangement etc
80.10 Effect of becoming parties to industry deeds or entering into settlement sharing arrangements
80.15 Effect of contributing operator’s payment
80.20 Managing operator’s payments or supplies
80.25 Contributing operator’s payment
80.30 Managing operator’s increasing adjustment where contributing operator’s payment
80.35 Adjustment events relating to managing operator’s payment or supply
Subdivision 80B – Nominal defendant settlement sharing arrangements
80.40 Meaning of nominal defendant settlement sharing arrangement etc
80.45 Nominal defendant settlement sharing arrangements to which this Subdivision applies
80.55 Effect of contributing operator’s payment
80.60 Managing operator’s payment or supply
80.65 Contributing operator’s payment
80.70 Managing operator’s increasing adjustment where contributing operator’s payment
80.75 Adjustment events relating to managing operator’s payment or supply
Subdivision 80C – Hybrid settlement sharing arrangements
80.80 Meaning of hybrid settlement sharing arrangement etc
80.85 Subdivision 80A to apply to hybrid settlement sharing arrangement, subject to exceptions
Division 81 – Payments of taxes, fees and charges
81.1 What this Division is about
81.10 Effect of payment of certain fees and charges
81.15 Other fees and charges that do not constitute consideration
81.20 Division has effect despite sections 9-15 and 9-17
81.25 Date of effect of regulations
Division 82 – Supplies in return for rights to develop land
82.1 What this Division is about
82.10 Supplies by Australian government agencies of rights to develop land are not for consideration
Division 83 – Non-residents making supplies connected with the indirect tax zone
83.1 What this Division is about
83.5 “Reverse charge” on supplies made by non-residents
83.10 Recipients who are members of GST groups
83.15 Recipients who are participants in GST joint ventures
83.20 The amount of GST on “reverse charged’ supplies made by non-residents
83.25 When non-residents must apply for registration
83.30 When the Commissioner must register non-residents
83.35 Tax invoices not required for “reverse charged” supplies made by non-residents
Division 84 – Offshore supplies
Subdivision 84A – Offshore supplies that are taxable supplies, and “reverse charged”, under this Subdivision
84.1 What this Division is about
84.5 Offshore supplies that are taxable supplies under this SubDivision
84.10 “Reverse charge” on offshore supplies
84.12 The amount of GST on offshore supplies that are “reverse charged”
84.13 The amount of input tax credits relating to offshore supplies
84.14 Supplies relating to employee share ownership schemes
84.15 Transfers etc between branches of the same entity
84.25 Tax periods for supplies from associates that are not connected with the indirect tax zone
84.30 Adjustments for acquisitions made solely for a creditable purpose
Subdivision 84B – Inbound intangible consumer supplies
84.45 What this Subdivision is about
84.50 No tax invoices or adjustment notes for inbound intangible consumer supplies
84.55 Operator of electronic distribution platform treated as supplier
Rulings and Determinations
LCG 2017/D4 – GST on supplies made through electronic distribution platforms
84.65 Meaning of inbound intangible consumer supply
84.70 Meaning of electronic distribution platform
Subdivision 84-C Offshore supplies of low value goods
84.73 What this Subdivision is about
84.75 Supplies of low value goods that are connected with the indirect tax zone
Rulings and Determinations
LCG 2017/D5 – When is a redeliverer responsible for GST on a supply of low value imported goods?
LCG 2017/D2 – GST on low value imported goods
84.77 Meaning of offshore supply of low value goods
84.79 Meaning of supply of low value goods
84.81 Who makes an offshore supply of low value goods
84.83 Exception – when supplier reasonably believes there will be a taxable importation
84.85 Exception – when there is also a taxable importation
84.87 No tax invoices or adjustment notes for offshore supplies of low value goods
84.89 Notifying amounts of GST to recipients of offshore supplies of low value goods
84.91 The amount of GST on offshore supplies of low value goods made by redeliverers
Subdivision 84D – Consumers of offshore supplies
84.95 What this Subdivision is about
84.100 When entities are treated as not being Australian consumers
Rulings and Determinations
GSTR 2017/1 – Goods and services tax: making cross-border supplies to Australian consumers
84.105 When entities are treated as not being consumers
Division 85 – Telecommunication supplies
85.1 What this Division is about
85.5 When telecommunication supplies are connected with Australia
85.10 Meaning of telecommunication supply
Division 86 – Valuable metals
86.1 What this Division is about
86.5 “Reverse charge” on supplies of goods consisting of valuable metal
86.10 The valuable metal threshold
86.15 Recipients who are members of GST groups
86.20 Recipients who are participants in GST joint ventures
86.25 The amount of GST on “reverse charged” supplies of goods consisting of valuable metal
Division 87 – Long-term accommodation in commercial residential premises
87.1 What this Division is about
87.5 Commercial residential premises that are predominantly for long-term accommodation
87.10 Commercial residential premises that are not predominantly for long-term accommodation
87.15 Meaning of commercial accommodation
87.20 Meaning of long-term accommodation etc
87.25 Suppliers may choose not to apply this Division
Division 90 – Company amalgamations
90.1 What this Division is about
90.5 Supplies not taxable – amalgamated company registered or required to be registered
90.10 Value of taxable supplies – amalgamated company not registered or required to be registered
90.15 Acquisitions not creditable – amalgamated company registered or required to be registered
90.20 Liability after amalgamation for GST on amalgamating company’s supplies
90.25 Entitlement after amalgamation to input tax credits for amalgamating company’s acquisitions
90.35 Amalgamating companies accounting on a cash basis
Division 93 – Time limit on entitlement to input tax credits
93.1 What this Division is about
93.5 Time limit on entitlements to input tax credits
Cases
H& B Auto Repair Centre Pty Ltd and Commissioner of Taxation [2022] AATA 3561 – goods and services tax – input tax credits – four year rule to claim input tax credit – eligibility to claim input tax credits – taxpayer’s burden to prove assessment excessive or otherwise incorrect – decision under review affirmed
JHKW and Commissioner of Taxation [2022] AATA 2875 – goods and services tax – input tax credits – four year rule to claim input tax credit – eligibility to claim input tax credits – taxpayer’s burden to prove assessment excessive or otherwise incorrect – decision under review affirmed
Linfox Australia Pty Ltd v Commissioner of Taxation [2019] FCAFC 131 – fuel tax credits – whether fuel tax credit “taken into account” in assessment of net fuel amount – appeal dismissed
Coles Supermarkets Australia Pty Ltd v Commissioner of Taxation [2019] FCA 1582 – fuel tax credits – whether time limit in 47-5 of the Fuel Tax Act applied where objection to assessments lodged within 4 year time period
Rosebridge Nominees Pty Ltd (in liq) and Commissioner of Taxation [2019] AATA 426 – GST – time limits on entitlement to claim input tax credits and GST refunds – whether special rules relating to representatives of incapacitated entities provide exemption from time limits – whether reviewable GST decision – objection decision affirmed
Linfox Australia Pty Ltd and Commissioner of Taxation [2019] AATA 222 – fuel tax credits – whether fuel tax credit “taken into account” in assessment of net fuel amount – whether objection stated in sufficient detail
Sedgwick and Commissioner of Taxation [2015] AATA 690 – the applicant was not entitled to claim input tax credits where the claim for credits was made after the four year statutory time period in Division 93 of the GST Act.
Re The Trustee for SBM Trust and Commissioner of Taxation [2015] AATA 174 – the effect of the introduction of the four-year statutory period in Division 93 was that the applicant was not entitled to input tax credits more that your years old – the Tribunal agreed with the Commissioner’s submission that the applicant “ceased to be entitled” to the input tax credits as soon as Division 93 became law because the applicant had not taken the creditable acquisitions into account in working out its net amount for:
(a) the tax periods to which the credits were attributable under s 29-10(1) or (2); or
(b) any other tax period for which it gave the Commissioner a GST return during the period of four years after the due date for those tax periods.
93.10 Exceptions to time limit on entitlement to input tax credits
93.15 GST ceasing to be payable on the related supply
Division 96 – Supplies partly connected with Australia
96.1 What this Division is about
96.5 Supplies that are only partly connected with Australia
Saga Holidays Limited v Commissioner of Taxation [2006] FCAFC 191 – at [48]: whether supply of accommodation to overseas tourists was incidental to the supply of tour – s 96-5(4) did not apply as accommodation was not subordinate or incidental to other elements of the tour
Division 99 – Deposits as security
99.1 What this Division is about
Rulings and Determinations
GSTR 2006/2 – Austlii – Goods and services tax: deposits held as security for the performance of an obligation
GSTD 2000/1 – Austlii – Goods and services tax: is the scope of Division 99 of the GST Act limited to holding deposits?
99.5 Giving a deposit as security does not constitute consideration
Cases
Container Homes Designer Domain Pty Ltd and Commissioner of Taxation [2023] AATA 1815 – GOODS AND SERVICES TAX – whether payment upon entry into contract a deposit – whether applicant acting as agent for customer – held applicant not acting as agent but payment not a deposit – decision set aside
Commissioner of Taxation v Reliance Carpet Co Limited [2008] HCA 22 – at [34]: s 99-5 operates as a “wait and see provision” and the payment of the deposit is to be treated as consideration for a supply only if and when the deposit it forfeited because of the default of the purchaser – if the sale proceeds to settlement the deposit will be applied towards the settlement payment
International Cases
Cross Border Lease Management Ltd v Revenue & Customs [2006] UKVAT V19853 – input tax — acquisition of car for letting on hire — customer providing substantial “security deposit” — deposit used as part payment for car — whether deposit truly a security deposit or part consideration for the hire — found to be a security deposit — appeal allowed
99.10 Attributing the GST relating to deposits that are forfeited etc
Cases
Commissioner of Taxation v Reliance Carpet Co Limited [2008] HCA 22 – at [39]: s 99-10 addresses the lack of temporal coincidence between supply (on entry into contract) and consideration (forfeiture of deposit) by attributing GST to the tax period in which the deposit is forfeited
International Cases
Total Mauritius Limited v Mauritius Revenue Authority [2011] UKPC 40 – VAT implications of deposits held for gas bottles and not claimed
Division 100 – Vouchers
100.1 What this Division is about
Rulings and Determinations
GSTR 2003/5 – Austlii – Goods and services tax: Vouchers
100.5 Supplies of vouchers with a stated monetary value
International cases
Lunar Missions Ltd v Revenue and Customs [2018] UKFTT 7 – payment for services in advance – tax point – section 6(4) VATA 1994 – whether amounting to prepayment – schedule 10A VATA 1994 – whether for face value voucher – if so, whether single purpose voucher
Associated Newspapers Ltd v HM Revenue & Customs [2017] EWCA Civ 54 – VAT – retailer vouchers – VATA, Sch 10A – provision of vouchers to customers free of charge as part of business promotion scheme – whether a right to claim deduction of input tax on acquisitions of vouchers from issuer retailers or intermediaries – – whether provision of vouchers free of charge gives rise to an output tax charge – earlier decisions – Revenue & Customs v Associated Newspapers Ltd [2015] UKFTT 641 – Associated Newspapers Ltd v Revenue & Customs [2015] UKFTT 409
Associated Newspapers Ltd v Revenue & Customs [2014] UKFTT 116 – retailer vouchers – delivery to customers as part of newspaper sales promotional scheme – whether articles 3 and 5 of the Value Added Tax (Supply of Services) Order 1993 apply to impose an output tax liability by reference to the cost of the vouchers – whether the vouchers were used for a purpose other than a purpose of the business of the Appellant – held no – preliminary issue decided in favour of the Appellant
Leisure Pass Group Lts v Revenue & Customs [2009] UKVAT V20910 – FACE VALUE VOUCHER – revised terms of London Pass – whether it represents a right to receive services to the value of an amounted stated on it – yes – appeal allowed
Spa & Resort Operations v Revenue & Customs [2009] UKVAT V20979 – VAT – output tax – face-value vouchers issued by appellant to guests at health and beauty treatment spas – assuming vouchers issued by appellant face-value vouchers whether supplied for consideration – no – alternatively whether vouchers discount vouchers – yes – appeal dismissed
Leisure Pass Group Ltd v Revenue & Customs [2007] UKVAT V20351 – FACE-VALUE VOUCHER – London Pass entitling the purchaser to visit a list of attractions without further payment – whether a right to receive services to the value of an amount stated on it or recorded in it – no – appeal dismissed
International cases
WIlton Park Ltd v Revenue and Customs [2015] UKUT 343 – whether face-value vouchers issued by appellant companies constitute ‘any 5 security for money’ within Item 1 Group 5 Schedule 9 to VATA 1994 – yes – whether services supplied by clubs in return for commission charged on redemption of vouchers are services of dealing with security for money – no – redemption of vouchers held to be part of composite taxable supply of performance facilitation services by appellants – appeals dismissed
Nagle & Anor (t/a Simon Templar Business Center) v Revenue and Customs [2015] UKFTT 390 – VAT – Onward sale of vouchers issued by retailers – Claim for recovery of input tax dismissed by Tribunal which also held output tax due on “subsequent” sale of vouchers – Parties directed to “use best endeavours” to determine proportion of vouches to be standard-rated – Application to Tribunal in absence of Agreement – Schedule 10A Value Added Tax Act 1994
100.12 Consideration on redemption of vouchers
100.15 Increasing adjustment for unredeemed vouchers
100.18 Arrangement for supply of voucher
100.20 Vouchers supplied to non-residents and redeemed by others in Australia
Division 102 – Cancelled lay-by sales
102.1 What this Division is about
Rulings and Determinations
GSTR 2000/12 – Austlii – Goods and services tax: attributing GST payable and input tax credits for supplies and acquisitions under lay-by sale agreements
102.10 Attributing GST and input tax credits
Division 105 – Supplies in satisfaction of debts
105.1 What this Division is about
105.5 Supplies by creditors in satisfaction of debts may be taxable supplies
Cases
Arab bank of Australia Ltd v Jeitani [2016] NSWSC 617 – possession of land – mortgages – mortgagor in default – sale of properties by mortgagee in possession – GST gross-up clauses in sale contracts – mortgagee required to pay GST on sales – whether gross-up clauses should have been enforced
The Trustee for Naidu Family Trust and Commissioner of Taxation [2011] AATA 910 – mortgagee liable for GST where agent of mortgagee completed sale of property where contract executed by vendor (mortgagor) – supply occurred on completion of sale
International cases
The Commissioner of Inland Revenue v Edgewater Motel Limited [2002] NZCA 293 – power of sale by mortgagee, GST obligations of mortgagee
Division 108 – Valuation of taxable supplies of goods in bond
108.1 What this Division is about
108.5 Taxable supplies of goods in bond etc
Division 110 – Tax-related transactions
110.1 What this Division is about
Subdivision 110A – Income tax-related transactions
110.5 Transfers of tax losses and net capital losses
110.15 Supplies under operation of consolidated group regime
110.20 Tax sharing agreements – entering into agreement etc
110.25 Tax sharing agreements – leaving group clear of group liability
Subdivision 110B – Other tax-related transactions
110.60 Indirect tax sharing agreements – entering into agreement etc
110.65 Indirect tax sharing agreements – leaving GST group or GST joint venture clear of liability
Division 111 – Reimbursement of employees etc
111.1 What this Division is about
111.5 Creditable acquisitions relating to reimbursements
111.10 Amounts of input tax credits relating to reimbursements
111.15 Tax invoices relating to reimbursements
111.18 Application of Division to volunteers working for charities etc
111.20 Application of Division to recipients of certain withholding payments
111.25 Employers paying expenses of employees etc
111.30 Reimbursements etc of former or future employees etc
Divison 113 – PAYG voluntary agreements
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