Australia: Determination on GST, wine tax, luxury car tax for defence-related international obligations
The Minister for Defence has registered a determination on GST, wine tax, luxury car tax for defence-related international obligations
Determination on GST, wine tax, luxury car tax
The Minister for Defence has registered a determination that allows a refund of goods and services tax (GST), wine tax, or luxury car tax for certain defence-related international obligations.
As outlined in Taxation Administration (Defence Related International Obligations and Other Matters– Indirect Tax Refunds) Determination 2023, the Minister for Defence may determine:
- The entities covered by the determination, to which a tax refund is payable
- The acquisitions covered by the determination, and by whom those acquisitions are made
- The intended uses of the acquisitions
- Any conditions and limitations on refunds made under the determination
- The period and manner in which refunds made under the determination will be paid
If a refund is made, the Defence Department will either:
- Pay the amount of tax to suppliers on behalf of the relevant foreign government or its visiting force; or
- Reimburse the relevant foreign government or its visiting force for amounts of tax paid to suppliers.
The Defence Department will subsequently claim refunds from the Australian Taxation Office, which the determination says will reduce compliance costs and payment delays for foreign governments and their visiting forces.
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