GST ‘ Countertrade Transactions

In our November 2016 Tax Update we discussed the difficulties caused for GST compliance where consideration is provided in non-monetary form.

The difficulties led the ATO to issue Practical Compliance Guideline PCG 2016/18 GST and countertrade transactions. PCG 2016/18 is intended to relieve taxpayers from strict GST compliance for certain transactions where consideration is provided in a non-monetary form.

A matter that was initially unclear to us in PCG 2016/18 was whether transactions intended to be covered by it could effectively be ignored for Business Activity Statement reporting purposes.

The ATO has now confirmed that, whilst a taxpayer may opt to continue to report a countertrade transaction in Business Activities Statement (using the concessional approach provided by PCG 2016/18), where the terms of PCG 2016/18 are met it is not necessary for the transaction to be reported.

This article provides a general summary of the subject covered as at the date it is published. It cannot be relied upon in relation to any specific instance. TaxEd Pty Ltd and any person connected with its production disclaim any liability in connection with any use. It is not intended to be, nor should it be relied upon as, a substitute for professional advice.