This GST Ruling, released on Wed 1.10.2014 explains the Commissioner’s view on GST consequences of incentive payments made by motor vehicle manufacturers, importers and distributors to motor vehicle dealers. It provides practical guidance to the motor vehicle industry following the decision in AP Group Ltd v FCT [2013] FCAFC 105. Broadly, the Ruling outlines incentive payment situations where:
- a supply is made to the manufacturer for consideration;
- a supply is made to the customer for consideration; and
- where no supply is made for consideration.
It also includes various worked examples to illustrate various scenarios in relation to incentive payments.
DATE OF EFFECT: It applies to tax periods starting on or after 1 May 2014.
[FJM Note: The ruling was a long and complicated ruling, and involved the application of Division 134 which relates to increasing and decreasing adjustments for third party transactions.]
[LTN 190, 1/10/14]