platforms allow other entities to make supplies through the store or market to consumers, in effect providing distribution services to these suppliers. Generally, in such cases the platform operator the entity – supplying access to the platform– will have most of the information about the recipients of supplies. Additionally, the operators are generally much larger and better resourced entities than most of the entities making supplies through the platform. They will also generally have significant influence over the terms of sales made using their platforms and either manage or closely regulate the payment process. this, where a supply is made through such an electronic distribution platform that is connected with the indirect tax zone as a result of these amendments, compliance and administration will be simplified if liability for GST rests on the platform operator rather than the supplier. On this basis, this Schedule shifts responsibility for the GST liability from a supplier to the operator of an electronic distribution platform for supplies that are inbound intangible consumer supplies made through the electronic distribution platform they operate. [Schedule 1, item 6, section 84-55] However, this will not occur if the platform operator does not control any of the key elements of the supply and the liability of the supplier is made clear in the related documentation. [Schedule 1, item 6, section 84-55] A platform operator will have no control of any of the key elements of the supply if they are not involved in authorising payment for or delivery of the supply, nor in setting the and conditions under which the supply is made. [Schedule 1, item 6, paragraph 84-55(4)(c)] Clarifying the liability of the supplier will require that a document issued to the recipient identifies the supply as being made by the supplier and the supplier and platform operator have agreed in writing that the supplier is responsible for the payment of GST on supplies. [Schedule 1, item 6, paragraphs 84-55(4)(b) and (c)] The amendments do not apply to supplies that are not inbound intangible consumer supplies such as supplies of goods or real property, supplies to registered entities and supplies performed in Australia even – where such supplies are made through the electronic distribution platform. Requirements to be an electronic distribution platform To be an electronic distribution platform, a platform must be operated by means of electronic communication within the meaning of the (broadly the communication of Electronic Transactions Act 1999 information by means of electro-magnetic energy). This means that it includes platforms operating over the internet and potentially by other
platforms allow other entities to make supplies through the store or market to consumers, in effect providing distribution services to these suppliers. Generally, in such cases the platform operator – the entity supplying access to the platform– will have most of the information about the recipients of supplies. Additionally, the operators are generally much larger and better resourced entities than most of the entities making supplies through the platform. They will also generally have significant influence over the terms of sales made using their platforms and either manage or closely regulate the payment process. this, where a supply is made through such an electronic distribution platform that is connected with the indirect tax zone as a result of these amendments, compliance and administration will be simplified if liability for GST rests on the platform operator rather than the supplier. On this basis, this Schedule shifts responsibility for the GST liability from a supplier to the operator of an electronic distribution platform for supplies that are inbound intangible consumer supplies made through the electronic distribution platform they operate. [Schedule 1, item 6, section 84-55] However, this will not occur if the platform operator does not control any of the key elements of the supply and the liability of the supplier is made clear in the related documentation. [Schedule 1, item 6, section 84-55] A platform operator will have no control of any of the key elements of the supply if they are not involved in authorising payment for or delivery of the supply, nor in setting the and conditions under which the supply is made. [Schedule 1, item 6, paragraph 84-55(4)(c)] Clarifying the liability of the supplier will require that a document issued to the recipient identifies the supply as being made by the supplier and the supplier and platform operator have agreed in writing that the supplier is responsible for the payment of GST on supplies. [Schedule 1, item 6, paragraphs 84-55(4)(b) and (c)] The amendments do not apply to supplies that are not inbound intangible consumer supplies such as supplies of goods or real property, supplies to registered entities and supplies performed in Australia – even where such supplies are made through the electronic distribution platform. Requirements to be an electronic distribution platform To be an electronic distribution platform, a platform must be operated by means of electronic communication within the meaning of the Electronic Transactions Act 1999 (broadly the communication of information by means of electro-magnetic energy). This means that it includes platforms operating over the internet and potentially by other
C2015-051_Explanatory-Material.docx