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

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

1. Name of determination

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

2. Commencement

This determination commences on 1 July 2018.

3. 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.

4. Method for converting an amount to Australian currency

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

amount expressed in a foreign currency x 1

your particular exchange rate at the conversion time

You must use your particular exchange rate consistently.

5. 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.