This GST Determination, issued on Wed 28.8.2013, states that second-hand goods are acquired for the purpose of sale in the ordinary course of business under Div 66 of the GST Act where an entity that acquires second-hand goods is in the business of buying and selling second-hand goods, and the goods are acquired for the purpose of being sold in the ordinary course of that business.
Broadly, the GST Determination states that second-hand goods are not acquired under Div 66 where the goods are acquired only in order to be leased, or where there is simply an intention that the goods will ultimately be sold after they are no longer required. However, it states under certain circumstances, a business involved in the leasing of selling of second-hand goods may also satisfy the requirement in s 66-5 of the GST Act. The GST Determination was previously issued as GST Determination GSTD 2013/D2 and has been revised from the Draft.
DATE OF EFFECT: Applies both before and after its date of issue.
[LTN 166, 28/9/13]