Document ID: chunk:federal_register_of_legislation:F2016L01534:body:0:p3
Version: federal_register_of_legislation:F2016L01534
Segment Type: other
Provision Reference: 
Character Range: 5356–7711

in 5(4)(a);

           (ii) GST-free trading stock purchases for tax periods in January to June is calculated by multiplying the percentage of GST-free trading stock from the sample period during 1 December to 31 January (of the same financial year) worked out in 5(3)(b) with the amount of trading stock the entity purchased in each tax period worked out in 5(4)(a);

           (iii) If the entity's tax period is a financial year then add the amounts of GST-free trading stock from:

               (1) July to December, calculated by multiplying the percentage of GST-free trading stock from the sample period 1 June to 31 July (of the same calendar year) worked out in 5(3)(b) to with the amount of trading stock the entity purchases from July to December worked out in 5(4)(a); and

               (2) January to June, calculated by multiplying the percentage of GST-free trading stock from the sample period 1 December to 31 January (of the same financial year) worked out in 5(3)(b) with the amount of trading stock the entity purchases from January to June worked out in 5(4)(a).

       (c)   For each tax period, subtract the amount worked out at 5(4)(b) from the amount worked out at 5(4)(a).

       (d)   Multiply the amount worked out at 5(4)(c) by 1/11th. This is the entity's input tax credit entitlement for the trading stock acquisitions for the tax period. The entity's net amount for the tax period is otherwise worked out in accordance with Division 17 of the GST Act.

    6.             If:

              a creditable acquisition has been included in paragraph 5(4)(a) for a tax period; and

             the entity's GST return for a subsequent tax period (where you are not using the method specified in this determination) includes an input tax credit for an acquisition covered by paragraph 5(4)(a) for an earlier tax period;

       then the entity's net amount for that earlier tax period is increased by the amount of that credit.

    7.             The entity does not need to hold a tax invoice for an acquisition for it to be included in the calculation of its input tax credit entitlement for trading stock purchases for a tax period whilst using the method specified in this determination.

Definitions

    8.             Expressions used in this determination have the same meaning as in the GST Act.