This GST Determination, released on Wed 6.6.2012, sets out the Commissioner’s views on the creditable purpose of acquisitions relating to currency exchange transactions by an entity carrying on an enterprise of retail foreign exchange services in Australia and is registered for the GST.
Generally, the Determination states that acquisitions related to an entity’s retail foreign currency exchange transactions with customers in Australia are made only partly for a creditable purpose under s 11-15.
The Determination was previously released as Draft GST Determination GSTD 2011/D5 and contains changes. It considers the creditable purpose of transactions in the following situations.
- outbound transactions – where the entity supplies foreign currency banknotes to customers intending to use the banknotes outside Australia, for which the customers provide Australian currency banknotes as consideration [GST-free]; and
- inbound transactions – where the entity supplies Australian currency banknotes to customers in Australia, for which the customers provide foreign currency banknotes as consideration [Input Taxed].
DATE OF EFFECT: Applies both before and after its date of issue.
[LTN 108, 6/6]