Goods and Services Tax: Foreign Currency Conversion Determination 2018 (Cth)

Legislative Instrument

Goods and Services Tax: Foreign Currency Conversion Determination 2018

I, Timothy Dyce, Deputy Commissioner of Taxation, make this Determination under subsection 9-85(2) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

Timothy Dyce Deputy Commissioner of Taxation Dated: 30 May 2018

1. Name of determination

This determination is the Goods and Services Tax: Foreign Currency Conversion Determination 2018.

2. Commencement

This determination commences on 1 July 2018.

3. Repeal of previous determination

This determination repeals and replaces the Goods and Services Tax: Foreign Currency Conversion Determination (No. 1) 2017 (the previous determination) - F2017L00845, registered on 30 June 2017.

4. Application

This determination applies to an entity that works out the value of a taxable supply in Australian currency using the method in section 5, because an amount of the consideration for the supply is expressed in a foreign currency.

5. Manner in which an amount of consideration for the supply is worked out

You can convert the amount of consideration expressed in a foreign currency using the following formula:

amount expressed in a foreign currency x 1

your particular exchange rate on the conversion day

You must use your particular exchange rate consistently.

6. Definitions

agreed rate means a particular rate agreed to between a supplier and a registered recipient. The agreed rate only applies for supplies made under the agreement and for the period of the agreement. Where the supplier and recipient are associates, the agreed rate must reflect the rate agreed to by parties dealing at arm's length.