Private ruling: GST and consideration for supplies
Published: November 2014

Ruling: A1: 1. Yes 2. The input tax credit in respect of Entity A's acquisition of the Services from Entity B is attributable to the tax period in which the First Payment is made, or the tax period in which an invoice relating to the acquisition is issued if the invoice is issued before the First Payment is made. 3. Yes 4. Yes


Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 paragraph 9-15(1)(b) | A New Tax System (Goods and Services Tax) Act 1999 subsection 11-5(b) | A New Tax System (Goods and Services Tax) Act 1999 paragraph 29-10(1)(a) | A New Tax System (Goods and Services Tax) Act 1999 section 40-5


Subject: GST and consideration for supplies: The Commissioner has ruled on each of the following questions. | 1. Is the First Payment payable by Entity A to Entity B under the terms of the Project Agreement consideration for the taxable supply of the Services made by Entity B to Entity A? | 2. In what tax period is the input tax credit in respect of the acquisition of the Services from Entity B under the Project Agreement, for which the First Payment is consideration, attributable to? | 3. Is the Purchase Price payable by Entity A to Entity C under the terms of the Receivables Re-purchase Agreement consideration for an input taxed financial supply of the assignment of the Receivable to Entity A? | 4. Is the Second Payment payable by Entity A to Entity B under the terms of the Project Agreement consideration for a taxable supply?