ATO draft GST ruling on making cross-border supplies to Australian consumers

The ATO has issued draft GST ruling GSTR 2016/D1 which discusses the GST implications of an overseas-based supplier making supplies of services, digital products or rights to Australian consumers that use or enjoy those supplies in Australia. The draft ruling aims to provide guidance in determining whether a recipient of a supply is an Australian consumer, including explaining the evidentiary requirements in establishing that a supply is not made to an Australian consumer.

Once finalised, the ruling is proposed to apply to arrangements that have been carried out from 1 July 2016 but only in relation to working out net amounts for tax periods starting on or after 1 July 2017. Special transitional rules apply for periodic or progressive supplies that are attributable to tax periods commencing before 1 July 2017. Comments can be made until 17 February 2017.

GST determination on foreign currency conversion

The ATO has issued draft GST Foreign Currency Conversion Determination FOREX 2016/D1. The draft determination applies to an entity that works out the value of a taxable supply in Australian currency because an amount of the consideration for the supply is expressed in a foreign currency. The draft determination provides additional conversion day options for non-residents that are making inbound intangible supplies. This draft determination once finalised will replace the A New Tax System (Goods and Services Tax) Act Foreign Currency Conversion Determination (No. 30) 2016. Comments were due to be made by 31 January 2017.

Addendum to GST rulings

The ATO has released addendum to the following GST rulings due to the changes made to the A New Tax System (Goods and Services Tax) Act 1999 by the Tax and Superannuation Laws Amendment PwC 9 TaxTalk Monthly February 2017 (2016 Measures No. 1) Act 2016 in relation to certain cross-border supplies:

GSTR 2000/24A5 - Addendum: Goods and services tax: Division 129 - making adjustments for changes in extent of creditable purpose. The Addendum makes reference to adjustments for acquisitions made solely for a creditable purpose that relate to offshore intangible supplies.

GSTR 2003/15A2 - Addendum: Goods and services tax: importation of goods into Australia. This Addendum reflects amendments made in relation to the calculation of the value of a taxable importation that is made on or after 1 October 2016.

Discussion paper on issues concerning electronic distribution platforms

The ATO has released a discussion paper on issues concerning electronic distribution platforms (EDPs) and the recent amendments to impose GST on digital supplies and services with effect from 1 July 2017. Broadly, the new rules ensure that the operator of an EDP is treated as having made supplies of digital products and services that are made through the EDP. The ATO is seeking input on a range of issues so it can provide relevant advice and guidance products to assis