Commonwealth legislation

Goods and Services Tax: Foreign Currency (Customs Value of Low Value Goods) Determination 2018

In ForceCTH

Jurisdiction

Commonwealth

Collection

legislative instrument

Plain English Summary

3/10 complexity

Specifies how to convert foreign‑currency amounts to Australian dollars for calculating the customs value of low‑value imported goods for GST: multiply the foreign amount by a single "particular exchange rate" at the time the price was first agreed, and use that rate consistently (s.4–5).

Affects importers, online sellers and businesses that report GST on low‑value imports by setting acceptable rate sources, publication‑timing rules and a recordkeeping obligation; the chosen rate directly changes GST payable and creates sourcing and consistency compliance requirements (s.3–5).

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Current sections

Direct links to the current provisions in Goods and Services Tax: Foreign Currency (Customs Value of Low Value Goods) Determination 2018.

Goods and Services Tax: Foreign Currency (Customs Value of Low Value Goods) Determination 2018

Legislative Instrument

Goods and Services Tax: Foreign Currency (Customs Value of Low Value Goods) Determination 2018

I, Timothy Dyce, Deputy Commissioner of Taxation, make this Determination under subsection 84-79(5) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

Timothy Dyce

Deputy Commissioner of Taxation

Dated: 30 May 2018

Name of determination

This determination is the Goods and Services Tax: Foreign Currency (Customs Value of Low Value Goods) Determination 2018.

Commencement

This determination commences on 1 July 2018.

Determination (who is covered by this determination)

This determination applies to an entity that uses the method in section 4 of this determination to work out the customs value of goods under subsection 84-79(4) of the GST Act.

Method for converting an amount to Australian currency

You can convert an amount expressed in foreign currency to Australian currency using the following method:

<table cellspacing="0" cellpadding="0" style="margin-left:30.6pt; border-collapse:collapse"><tbody><tr><td rowspan="2" style="width:150pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p style="margin-bottom:6pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">a</span><span style="font-family:Arial, sans-serif">mount </span><span style="font-family:Arial, sans-serif">expressed in a foreign currency</span></p></td><td rowspan="2" style="width:24.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p style="margin-bottom:6pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">x</span></p></td><td style="width:183.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p style="margin-bottom:6pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">1</span></p></td></tr><tr><td style="width:183.1pt; border-top:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p style="margin-bottom:6pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">your particular excha</span><span style="font-family:Arial, sans-serif">nge rate at the conversion time</span></p></td></tr></tbody></table>

You must use your particular exchange rate consistently.

Definitions

another central bank is a central bank or monetary authority outside the indirect tax zone that exercises functions that correspond with, or are similar to, the Reserve Bank of Australia.

conversion time is the time when the consideration for the supply was first agreed.

exchange rate means the unit of foreign currency per Australian dollar, which has been published within 7 calendar days of the conversion time. If a rate other than the most recently published rate is used, the practice for sourcing the rate must be consistent.

foreign currency means a currency other than Australian currency.

foreign exchange data vendor means an organisation that provides foreign currency data to financial firms, traders and investors.

foreign exchange organisation means an organisation that provides exchange rates publicly.

mid-market rate means a rate based on the midpoint between the bid and ask rates for the Australian dollar. This includes mid-market rates between the Australian dollar and a foreign currency calculated by reference to a third currency, such as the United States dollar.

RBA rate means the foreign exchange rate specified by the Reserve Bank of Australia.

Reserve Bank of Australia means the body corporate continued in existence under the Reserve Bank Act 1959.

your particular exchange rate is one of the following:

(a) the RBA rate, or a reference rate published by another central bank, or
(b) an exchange rate that is consistently higher than the RBA rate published by a foreign exchange organisation, or
(c) a mid-market rate of a foreign exchange organisation or a foreign exchange data vendor.

6. All other expressions in this determination have the same meaning as in the GST Act.

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

1 Goods and Services Tax: Foreign Currency (Customs Value of Low Value Goods) Determination 2018

Legislative Instrument

Goods and Services Tax: Foreign Currency (Customs Value of Low Value Goods) Determination 2018

I, Timothy Dyce, Deputy Commissioner of Taxation, make this Determination under subsection 84-79(5) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

Timothy Dyce

Deputy Commissioner of Taxation

Dated: 30 May 2018

Name of determination

This determination is the Goods and Services Tax: Foreign Currency (Customs Value of Low Value Goods) Determination 2018.

Commencement

This determination commences on 1 July 2018.

Determination (who is covered by this determination)

This determination applies to an entity that uses the method in section 4 of this determination to work out the customs value of goods under subsection 84-79(4) of the GST Act.

Method for converting an amount to Australian currency

You can convert an amount expressed in foreign currency to Australian currency using the following method:

<table cellspacing="0" cellpadding="0" style="margin-left:30.6pt; border-collapse:collapse"><tbody><tr><td rowspan="2" style="width:150pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p style="margin-bottom:6pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">a</span><span style="font-family:Arial, sans-serif">mount </span><span style="font-family:Arial, sans-serif">expressed in a foreign currency</span></p></td><td rowspan="2" style="width:24.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p style="margin-bottom:6pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">x</span></p></td><td style="width:183.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p style="margin-bottom:6pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">1</span></p></td></tr><tr><td style="width:183.1pt; border-top:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p style="margin-bottom:6pt; text-align:center; font-size:11pt"><span style="font-family:Arial, sans-serif">your particular excha</span><span style="font-family:Arial, sans-serif">nge rate at the conversion time</span></p></td></tr></tbody></table>