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Location, location, location – Where are rights for use?
Published on 01 Jun 14 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
A “supply in relation to rights for use outside Australia” is GST-free under item 4(a) of the table in s 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999. Since the High Court decision in Travelex Ltd in 2010, the issue of whether particular supplies of rights are for use outside Australia has become particularly important in the context of financial services, which often constitute the supply of rights, in the global economy. The Commissioner has recently issued a draft GST determination about the application of item 4(a) to the supply of a credit card.
This article explores the issue of when rights are for use outside Australia for the purposes of item 4(a). In particular, it analyses the approach adopted by the High Court to determine the location of use and queries whether the views expressed by the Commissioner in the draft determination are consistent with this approach.
Author profile
Matthew Strauch CTA
Matthew Strauch, CTA, is a Tax Partner at PwC and leads its National Indirect Taxes practice, with over 20 years’ experience in advising on indirect taxes in both Australia and the UK. Matt advises in all areas of Australian GST with a specific focus on the financial services and advising on M&A and transactions. He also regularly advises clients on GST governance, technology and operations and has significant experience in assisting clients in relation to ATO reviews and audits and in controversy matters. - Current at 27 July 2023
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