A New Tax System (Goods and Services Tax) Act 1999
84‑13 The amount of input tax credits re84‑13 The amount of input tax credits relating to offshore supplies
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84‑13 The amount of input tax credits relating to offshore supplies
(1) The amount of the input tax credit for a *creditable acquisition that relates to a supply that is a *taxable supply because of section 84‑5 is as follows:
Start formula Full input tax credit times Extent of creditable purpose times Extent of consideration end formula
where:
extent of consideration is:
(a) if the \*recipient is the supplier’s \*associate and the supply is without \*consideration—100%; or
(b) in any other case—the extent to which you provide, or are liable to provide, the consideration for the acquisition, expressed as a percentage of the total consideration for the acquisition.
extent of creditable purpose is the extent to which the *creditable acquisition is for a *creditable purpose, expressed as a percentage of the total purpose of the acquisition.
full input tax credit is 11/10 of what would have been the amount of the input tax credit for the acquisition if:
(a) the supply had been or is a \*taxable supply otherwise than because of section 84‑5; and
(b) the acquisition had been made solely for a creditable purpose; and
(c) you had provided, or had been liable to provide, all of the consideration for the acquisition.
(1A) However, if: (a) an *annual apportionment election that you have made has effect at the end of the tax period to which the input tax credit is attributable; and (b) the acquisition is not an acquisition of a kind specified in the regulations made for the purposes of paragraph 131‑40(1)(b); the amount of the input tax credit on the acquisition is worked out under section 131‑40 as if full input tax credit had the same meaning in subsection 131‑40(2) as it has in subsection (1) of this section. (2) This section has effect despite: (a) sections 11‑25 and 11‑30 (which are about the amount of input tax credits for creditable acquisitions); and (b) section 72‑45 (which is about the amount of input tax credits on an acquisition from an associate without consideration).