Commonwealth Consolidated Acts

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Arrangements under which intermediaries are treated as suppliers or acquirers

             (1)  An entity (the principal ) may, in writing, enter into an arrangement with another entity (the intermediary ) under which:

                     (a)  the intermediary will, on the principal's behalf, do any or all of the following:

                              (i)  make supplies to third parties;

                             (ii)  facilitate supplies to third parties (including by issuing * invoices relating to, or receiving * consideration for, such supplies);

                            (iii)  make acquisitions from third parties;

                            (iv)  facilitate acquisitions from third parties (including by providing consideration for such acquisitions); and

                     (b)  the kinds of supplies or acquisitions, or the kinds of supplies and acquisitions, to which the arrangement applies are specified; and

                     (c)  for the purposes of the GST law:

                              (i)  the intermediary will be treated as making the supplies to the third parties, or acquisitions from the third parties, or both; and

                             (ii)  the principal will be treated as making corresponding supplies to the intermediary, or corresponding acquisitions from the intermediary, or both; and

                     (d)  in the case of supplies to third parties:

                              (i)  the intermediary will issue to the third parties, in the intermediary's own name, all the * tax invoices and * adjustment notes relating to those supplies; and

                             (ii)  the principal will not issue to the third parties any tax invoices and adjustment notes relating to those supplies; and

                     (e)  the arrangement ceases to have effect if the principal or the intermediary, or both of them, cease to be * registered.

             (2)  For the purposes of subsection (1), an entity can be an intermediary whether or not the entity is the agent of the principal.

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