As of 1 April 2017, a reverse charge of Australian GST will apply to business-to-business taxable supplies of gold, silver or platinum. The amount of GST on a supply of reverse charged metal is 10% of the price of supply.
Under this change to the law, entities acquiring gold, silver or platinum from another business, will be responsible for reporting and paying the GST amount to the ATO when lodging a business activity statement (BAS).
Tax Invoices will still be required for reverse charged transactions. This amendment was implemented by the Australian Government so that businesses in the precious metal industry are able to meet their GST and reporting obligations easier and faster.
Also effective from 1 April 2017, the definition of 'second hand goods' will be amended to clarify that goods containing gold, silver or platinum are not second hand goods. This change will ensure that GST registered entities do not incorrectly claim input tax credits when acquiring gold, silver or platinum, regardless of its form