COMMONWEALTH OF AUSTRALIA
A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999
A NEW TAX SYSTEM (GOODS AND SERVICES TAX) FOREIGN EXCHANGE CONVERSION DETERMINATION (NO.1) 2001
Under subsection 9-85(2) of the A New Tax System (Goods and Services Tax) Act 1999 and subsection 4(1) of the Acts Interpretation Act 1901, I make the following determination:
Citation
1. This determination is the A New Tax System (Goods and Services Tax) Act Foreign Exchange Conversion Determination (No. 1) 2001.
Commencement
2. This determination commences on and from 1 July 2000. However, to the extent that this determination is inconsistent with Draft Goods and Services Tax Ruling GSTR 2000/D15, the Draft Ruling applies up until the date of issue of this determination.
Application of determination
3. This determination applies to an entity that works out the value in Australian currency where the consideration for a taxable supply is expressed in a currency other than Australian currency.
Manner in which the value or an amount of consideration for the supply is worked out
4. In working out the value of a taxable supply, you convert the consideration on a conversion day worked out in accordance with the following formula:
Amount expressed |
| 1 |
in a | X | your particular exchange rate |
foreign currency |
| on the conversion day |
where,
- your particular exchange rate is the rate from the foreign exchange organisation, the RBA rate, or the rate from your agreement, whichever is applicable; and
- the conversion day is the date that the foreign currency is converted into Australian currency for GST purposes.
5. You must use your particular exchange rate consistently.
Definitions
6. (1). The following expressions are defined for the purposes of this determination:
RBA rate means the foreign exchange rate calculated by the Reserve Bank of Australia (RBA) when the entity works out the consideration on a conversion day:
(a) that is an RBA business day, then the RBA rate is the unit of foreign currency per $A calculated by the RBA as the 4:00pm Australian Eastern time rate on that RBA business day or previous RBA business day, and
(b) that is not an RBA business day, then the RBA rate is the unit of foreign currency per $A calculated by the RBA as the 4:00pm Australian Eastern time rate of the previous RBA business day.
conversion day is the date you use to convert foreign currency into Australian currency for GST purposes:
(a) when you account for GST on a basis other than cash your conversion day is:
(i) the day on which any of the consideration is received for the supply (the receipt date); or
(ii) the transaction date/the invoice date (whichever you have chosen);
whichever comes first; or
(b) when you account for GST on a cash basis, your conversion day is:
(i) the transaction date;
(ii) the invoice date; or
(iii) the day on which any of the consideration is received for the supply.
agreed rate means a foreign exchange rate agreed to between a supplier and a recipient of a taxable supply. The agreed rate only applies for supplies made under the agreement and for the period of the agreement.
exchange rate means the unit of foreign currency per Australian dollar.
RBA business day means a day that the head office of the Reserve Bank is open for business.
Reserve Bank means the body corporate continued in existence under the Reserve Bank Act 1959.
(2) Other expressions in this determination have the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.
Signed this 2nd day of February 2001.
Signed by Peter Chochula
Senior Tax Counsel
Goods and Services Tax Program
Delegate of the Commissioner