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A New Tax System (Goods and Services Tax) Act 1999

Chapter 2 - The basic rules  

Part 2-2 - Supplies and acquisitions  

Division 9 - Taxable supplies  

Subdivision 9-A - What are taxable supplies?  

9-25  Supplies connected with the indirect tax zone  

Supplies of goods wholly within the indirect tax zone

(1)  

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A supply of goods is connected with the indirect tax zone if the goods are delivered, or made available, in the indirect tax zone to the *recipient of the supply.

Supplies of goods from the indirect tax zone

(2)  

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A supply of goods that involves the goods being removed from the indirect tax zone is connected with the indirect tax zone.

Supplies of goods to the indirect tax zone

(3)  

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A supply of goods that involves the goods being brought to the indirect tax zone is connected with the indirect tax zone if the supplier imports the goods into the indirect tax zone.

(3A)  

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A supply of goods that is an *offshore supply of low value goods is connected with the indirect tax zone if it is connected with the indirect tax zone under Subdivision 84-C.

Supplies of real property

(4)  

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A supply of *real property is connected with the indirect tax zone if the real property, or the land to which the real property relates, is in the indirect tax zone.

Supplies of anything else

(5)  

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A supply of anything other than goods or *real property is connected with the indirect tax zone if:


(a) the thing is done in the indirect tax zone; or
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(b) the supplier makes the supply through an *enterprise that the supplier *carries on in the indirect tax zone; or
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(c) all of the following apply:

(i) neither paragraph (a) nor (b) applies in respect of the thing;

(ii) the thing is a right or option to acquire another thing;

(iii) the supply of the other thing would be connected with the indirect tax zone; or
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(d) the *recipient of the supply is an *Australian consumer.
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Example:

A holiday package for a trip to Queensland that is supplied by a travel operator in Japan will be connected with the indirect tax zone under paragraph (5)(c).

Note:

A supply that is connected with the indirect tax zone under this subsection might be GST-free if it is consumed outside the indirect tax zone: see section 38-190. For more rules about supplies that are GST-free, see Division 38.

Supplies of goods involving installation or assembly services

(6)  

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If a supply of goods (other than a *luxury car) (the actual supply) involves the goods being brought to the indirect tax zone and the installation or assembly of the goods in the indirect tax zone, then the actual supply is to be treated as if it were 2 separate supplies in the following way:


(a) the part of the actual supply that involves the installation or assembly of the goods in the indirect tax zone is to be treated as if it were a separate supply of a thing done in the indirect tax zone;
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(b) the remainder of the actual supply is to be treated as if it were a separate supply of goods involving the goods being brought to the indirect tax zone but not involving the installation or assembly of the goods.

Note 1:

The paragraph (a) supply is connected with the indirect tax zone (see paragraph (5)(a)), unless item 1 or 2 of the table in section 9-26 applies.

Note 2:

The paragraph (b) supply may be a taxable supply (see subsection (3)), or there may be a taxable importation of the goods: see Division 13.

Note 3:

For the price of the separate supplies, see subsection 9-75(4).

Meaning of Australian consumer

(7)  

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An entity is an Australian consumer of a supply made to the entity if:


(a) the entity is an *Australian resident (other than an entity that is an Australian resident solely because the definition of Australia in the *ITAA 1997 includes the external Territories); and


(b) the entity:


(i) is not *registered; or

(ii) if the entity is registered - the entity does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the entity *carries on.

Note:

Suppliers must take reasonable steps to ascertain whether recipients are Australian consumers: see section 84-100.


 



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