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Indirect Tax Legislation Amendment Bill 2000
Schedule 6 Calculating amounts of GST

   

A New Tax System (Goods and Services Tax) Act 1999

1  After section 9-85

Insert:

9-90   Rounding of amounts of GST

One taxable supply recorded on an invoice

             (1)  If the amount of GST on a * taxable supply that is the only taxable supply recorded on a particular * invoice would, apart from this section, be an amount that includes a fraction of a cent, the amount of GST is rounded to the nearest cent (rounding 0.5 cents upwards).

Several taxable supplies recorded on an invoice

             (2)  If 2 or more * taxable supplies are recorded on the same * invoice, the total amount of GST on the supplies is:

                     (a)  what would be the amount of GST if it were worked out by:

                              (i)  working out the GST on each of the supplies (without rounding the amounts to the nearest cent); and

                             (ii)  adding the amounts together and, if the total is an amount that includes a fraction of a cent, rounding it to the nearest cent (rounding 0.5 cents upwards); or

                     (b)  the amount worked out using the following method statement:

Method statement

Step 1.   Work out, for each * taxable supply, what would, apart from this section, be the amount of GST on the supply.

Step 2.   If the amount for the supply has more decimal places than the number of decimal places allowed by the accounting system used to work out the amount, round the amount (up or down as appropriate) to that number of decimal places.

                   Note:             Subsection (4) gives further details of this rounding.

Step 3.   Work out the sum of the amounts worked out under step 1 and (if applicable) step 2 for each supply.

Step 4.   If the sum under step 3 includes a fraction of a cent, round the sum to the nearest cent (rounding 0.5 cents upwards).

             (3)  Whether to use paragraph (2)(a) or paragraph (2)(b) to work out the total amount of GST on the supplies is a matter of choice for:

                     (a)  the supplier if the amount is being worked out to ascertain the supplier’s liability for GST; or

                     (b)  the * recipient of the supplies if the amount is being worked out to ascertain the recipient’s entitlement to input tax credits.

             (4)  In applying step 2 of the method statement in subsection (2), if:

                     (a)  the number of decimal places in the amount for the supply exceeds by one decimal place the number of decimal places allowed by the accounting system used to work out the amount; and

                     (b)  the last digit of the amount (before rounding) is 5;

the amount is rounded upwards to that number of decimal places.

Taxable supplies divided into items

             (5)  If one or more * taxable supplies recorded on the same * invoice are divided into 2 or more items:

                     (a)  subsection (1) does not apply; and

                     (b)  subsection (2) applies as if each such item represented a separate taxable supply.

Taxable supplies recorded on documents other than invoices

             (6)  If one or more * taxable supplies, none of which are recorded on an * invoice, are recorded on a document that is not an invoice, this section applies as if the document were an invoice.

2  After section 17-10

Insert:

17-15   Working out net amounts using approved forms

             (1)  You may choose to work out your * net amount for a tax period in the way specified in an * approved form if you use the form to notify the Commissioner of that net amount. The amount so worked out is treated as your net amount for the tax period.

Note:          Choosing to use section 17-5 to work out your net amount does not mean your GST return is not in the approved form: see subsection 31-15(3).

             (2)  This section has effect despite section 17-5.

3  At the end of section 31-15

Add:

             (3)  The fact that, in your * GST return for the * tax period, your * net amount for the * tax period is worked out:

                     (a)  in the way specified in section 17-5; and

                     (b)  not in the way specified in the * approved form for a GST return;

does not prevent your GST return for the tax period being treated as being in the approved form.

4  At the end of subsection 66-50(3)

Add:

Note:          Section 9-90 (rounding of amounts of GST) can apply to amounts of GST worked out using this section.

5  At the end of subsection 75-10(4)

Add:

Note:          Section 9-90 (rounding of amounts of GST) can apply to amounts of GST worked out using this section.

6  At the end of subsection 84-12(2)

Add:

Note:          Section 9-90 (rounding of amounts of GST) can apply to amounts of GST worked out using this section.

A New Tax System (Goods and Services Tax Transition) Act 1999

7  After section 24A

Insert:

24B   Commissioner may make determinations relating to rounding

             (1)  The Commissioner may determine in writing a way in which amounts of GST for taxable supplies recorded on invoices may be rounded for the purposes of:

                     (a)  subsection 9-90(1) of the GST Act; and

                     (b)  subparagraph 9-90(2)(a)(ii) of the GST Act; and

                     (c)  step 4 in the method statement in subsection 9-90(2) of the GST Act.

             (2)  However, the determination only applies:

                     (a)  to the entity specified in the determination; and

                     (b)  to taxable supplies attributable under the GST Act to tax periods that end on or before the day specified in the determination.

             (3)  The entity may round amounts of GST, for the purposes of the provisions referred to in paragraphs (1)(a), (b) and (c):

                     (a)  in the way specified in the determination; or

                     (b)  in the way specified in the provisions referred to in those paragraphs.

             (4)  The day specified under paragraph (2)(b) must not be later than 30 June 2002.

             (5)  An entity may apply to the Commissioner in writing for a determination under this section.

Note:          Refusing an application for a determination under this section, and making determinations under this section, are reviewable GST transitional decisions (see Division 7 of Part VI of the Taxation Administration Act 1953 ).

             (6)  If one or more taxable supplies, none of which are recorded on an invoice, are recorded on a document that is not an invoice, this section applies as if the document were an invoice.

Taxation Administration Act 1953

8  After paragraph 62(1)(c)

Insert:

                 or (d)  a reviewable GST transitional decision relating to you;

9  Subsection 62(1) (note)

Omit “and subsection (3) lists reviewable indirect tax decisions under this Part”, substitute “, subsection (3) lists reviewable indirect tax decisions under this Part and subsection (3A) lists reviewable GST transitional decisions under the A New Tax System (Goods and Services Tax Transition) Act 1999 ”.

10  After subsection 62(3)

Insert:

          (3A)  A decision under section 24B of the A New Tax System (Goods and Services Tax Transition) Act 1999 refusing an application for a determination under that section, or making a determination under that section, is a reviewable GST transitional decision .