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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?  

9-26  Supplies by non-residents that are not connected with the indirect tax zone  

 View history reference

(1)  

A supply is not connected with the indirect tax zone if:


(a) the supplier is a *non-resident; and


(b) the supplier does not make the supply through an *enterprise that the supplier *carries on in the indirect tax zone; and


(c) the supply is covered by an item in this table:
Offshore supplies that are not connected with the indirect tax zone
ItemTopicThese supplies are not connected with the indirect tax zone [mldr ]
1Inbound intangible supplya supply of anything other than goods or *real property if:
(a)the thing is done in the indirect tax zone; and
(b)the *recipient is an *Australian-based business recipient of the supply.
2Intangible supply between non-residentsa supply of anything other than goods or *real property if:
(a)the thing is done in the indirect tax zone; and
(b)the *recipient is a *non-resident that acquires the thing supplied solely for the purpose of an *enterprise that the recipient *carries on outside the indirect tax zone.
3Supply between non-residents of leased goodsa supply by way of transfer of ownership of leased goods if:
(a)the *recipient is a *non-resident that does not acquire the thing supplied solely or partly for the purpose of an *enterprise that the recipient *carries on in the indirect tax zone; and
(b)the lessee:
 (i)made a *taxable importation of the goods before the supply was made; and
 (ii)continues to lease the goods on substantially similar terms and conditions after the supply is made.
4Supply by way of continued lease of goods from item 3a supply made by way of lease if:
(a)the *recipient is the lessee referred to in paragraph (b) of item 3 of this table; and
(b)the lease is the lease referred to in subparagraph (ii) of that paragraph.

Note:

This subsection does not apply to supplies made by a non-resident through a resident agent if they have agreed it is not to apply: see section 57-7.

(2)  

An entity is an Australian-based business recipient of a supply made to the entity if:


(a) the entity is *registered; and


(b) an *enterprise of the entity is *carried on in the indirect tax zone; and


(c) the entity's acquisition of the thing supplied is not solely of a private or domestic nature.

Note:

If a supply is not connected with the indirect tax zone, the Australian-based business recipient may be subject to a reverse charge: see Subdivision 84-A.

(3)  

This section applies despite sections 9-25 (which is about when supplies are connected with the indirect tax zone) and 85-5 (which is about telecommunication supplies).


 



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