On March 31, 2017 the Australian Taxation Office (ATO) issued an announcement informing the public that on March 31, 2017  the Australian Government announced that, from April 1, 2017, a reverse charge of goods and services tax (GST) applies to all business to business taxable supplies of gold, silver or platinum.

 

According to ATO, in summary the measure means the GST on a taxable supply is payable by the recipient of the supply, and is not payable by the supplier if:

·   the supply is a supply of goods that consists of gold, silver, platinum, or any other substance which would be precious metal if it were of the required fineness and form; and

·   the supplier and recipient is registered or required to be registered.

 

Goods need not be entirely comprised of gold etcetera in order to be reverse charged and that the amount of GST on a supply of “reverse charged” metal is 10% of the price of supply. The ATO furthermore states that Tax Invoices will still be required for “reverse charged” transactions.

 

Per the same annoucement ATO also informs the public that in addition, the Australian Government announced an amendment to the definition of ‘second-hand goods’ that applies from April 1, 2017. This amendment clarifies that gold, silver and platinum ‘not in investment form’ is not a ‘second hand good’. This confirms that no credit entitlement is available for acquisitions of gold, silver and platinum from unregistered persons.

 

For further information click here to be forwarded to the announcement as issued by ATO on March 31, 2017. The announcement also contains a link to “Draft Goods and Services Tax Determination - GSTD 2017/D1” and a link to a webpage on the ATO website titled “Reverse charge in the precious metals industry”.

 


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