Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A supply is not connected with the indirect tax zone if:
(a) the supplier is a * non - resident; and
(b) the supplier does not make the supply through an * enterprise that the supplier * carries on in the indirect tax zone; and
(c) the supply is covered by an item in this table:
Offshore supplies that are not connected with the indirect tax zone | ||
Item | Topic | These supplies are not connected with the indirect tax zone ... |
1 | Inbound intangible supply | a supply of anything other than goods or * real property if: (a) the thing is done in the indirect tax zone; and (b) the * recipient is an * Australian - based business recipient of the supply. |
2 | Intangible supply between non - residents | a supply of anything other than goods or * real property if: (a) the thing is done in the indirect tax zone; and (b) the * recipient is a * non - resident that acquires the thing supplied solely for the purpose of an * enterprise that the recipient * carries on outside the indirect tax zone. |
3 | a supply by way of transfer of ownership of leased goods if: (a) the * recipient is a * non - resident that does not acquire the thing supplied solely or partly for the purpose of an * enterprise that the recipient * carries on in the indirect tax zone; and (b) the lessee: (i) made a * taxable importation of the goods before the supply was made; and (ii) continues to lease the goods on substantially similar terms and conditions after the supply is made. | |
4 | a supply made by way of lease if: (a) the * recipient is the lessee referred to in paragraph (b) of item 3 of this table; and (b) the lease is the lease referred to in subparagraph (ii) of that paragraph. | |
Note: This subsection does not apply to supplies made by a non - resident through a resident agent if they have agreed it is not to apply: see section 57 - 7.
(2) An entity is an Australian - based business recipient of a supply made to the entity if:
(a) the entity is * registered; and
(b) an * enterprise of the entity is * carried on in the indirect tax zone; and
(c) the entity's acquisition of the thing supplied is not solely of a private or domestic nature.
Note: If a supply is not connected with the indirect tax zone, the Australian - based business recipient may be subject to a reverse charge: see Subdivision 84 - A.
(3) This section applies despite sections 9 - 25 (which is about when supplies are connected with the indirect tax zone) and 85 - 5 (which is about telecommunication supplies).