Sladen Snippet - ATO releases discussion paper on new GST rules for digital supplies

On 06 December 2016, the Commissioner of Taxation issued the Discussion Paper TDP 2016/1 on issues concerning electronic distribution platforms (EDPs). The discussion paper seeks feedback in relation to the new Goods and Services Tax (GST) rules for digital suppliers and services affecting EDPs from 1 July 2017.

The GST Act was amended by the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Act 2016 to insert special rules for operators of EDPs concerning the GST liability on the domestic sale of their digital products and services. Under these rules, the operator of the EDP, instead of the supplier, should include the value of the supplies in its GST turnover to determine whether it is required to register for GST. The operator should also pay the GST on the supplies.

The discussion paper seeks input on various issues, including:

  • the definition of EDP and what services are excluded from the definition;
  • the definition of a service delivered by means of electronic communications;
  • the types of supplies that can be included in an agreement between the supplier and the operator of an EDP;
  • the liability for GST when the operator does not authorise the charge to the recipient for the supply and the delivery of the supply; and
  • the liability for GST where there are multiple operators.

The ATO is seeking suggestions or comments on those issues, or any other issues which the Commissioner may issue advice or guidance on EDP provisions by 20 January 2017.

To discuss this further or for more information please contact:

Daniel Smedley
Principal | Accredited Specialist in Tax Law
Sladen Legal
M +61 411 319 327 |  T +61 3 9611 0105
Level 5, 707 Collins Street, Melbourne, 3008, Victoria, Australia

Patricia Martins
Legal Executive / Project Manager
Sladen Legal
T +61 3 9611 0138
Level 5, 707 Collins Street, Melbourne, 3008, Victoria, Australia