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Legislative Instrument

Goods and Services Tax: Foreign Currency Conversion Determination 2018

I, Timothy Dyce, Deputy Commissioner of Taxation, make this Determination under subsection 9-85(2) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

Timothy Dyce
Deputy Commissioner of Taxation
Dated: 30 May 2018

    1.                  Name of determination

    This determination is the Goods and Services Tax: Foreign Currency Conversion Determination 2018.

    2.                  Commencement

    This determination commences on 1 July 2018.

    3.                  Repeal of previous determination

    This determination repeals and replaces the  Goods and Services Tax: Foreign Currency Conversion Determination (No. 1) 2017 (the previous determination) - F2017L00845, registered on 30 June 2017.

    4.                  Application

    This determination applies to an entity that works out the value of a taxable supply in Australian currency using the method in section 5, because an amount of the consideration for the supply is expressed in a foreign currency.

    5.                  Manner in which an amount of consideration for the supply is worked out

    You can convert the amount of consideration expressed in a foreign currency using the following formula:

amount expressed in a foreign currency               x  1

your particular exchange rate on the conversion day

    You must use your particular exchange rate consistently.

    6.                  Definitions

    agreed rate means a particular rate agreed to between a supplier and a registered recipient. The agreed rate only applies for supplies made under the agreement and for the period of the agreement. Where the supplier and recipient are associates, the agreed rate must reflect the rate agreed to by parties dealing at arm's length.

    conversion day is the date you use to convert foreign currency into Australian currency under this determination:

         (a) when you account for GST on a basis other than cash your conversion day is the earlier of:

             (i) the day on which any of the consideration is received for the supply (the receipt date); or

             (ii) the transaction date or the invoice date (whichever you have chosen).

         (b) when you account for GST on a cash basis, your conversion day is:

             (i) the transaction date; or

             (ii) the invoice date; or

             (iii) the day on which any of the consideration is received for the supply.

         (c) if you are a non-resident that is not a limited registration entity, and you are making inbound intangible consumer supplies, offshore supplies of low value goods, or both, your conversion day is:

             (i)                  a day specified in either paragraphs (a) or (b) of this definition for any types of supplies that you make (including inbound intangible consumer supplies or offshore supplies of low value goods); or

             (ii)                for your inbound intangible consumer supplies, offshore supplies of low value goods, or both, the final day of the relevant