The ATO hasnissued a Practical Compliance Guideline which sets out the Tax Commissioner’sncompliance approach, in the context of GST, to entities that enter intoncountertrade transactions as part of carrying on their enterprise.n“Countertrade” refers to the direct exchange of things by one entity for thingsnprovided by another entity, and does not include transactions where any of thenconsideration is monetary.
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Each entitynto a countertrade makes a supply and an acquisition. The Commissioner is awarenof various practical problems in the context of these transactions and notes thatnthe compliance and administrative costs may be unnecessarily burdensome where suchntransactions have no net revenue effect. Accordingly, the Guideline seeks tonapply a practical compliance approach for certain countertrade transactionsnthat are GST-neutral.
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TIP: The Practical Compliance Guideline isnonly applicable in relation to GST – not for any other purpose or in relationnto any other tax obligations and entitlements. It also only applies innspecified circumstances, including where the countertrade transactions accountnfor no more than approximately 10{256a07afe6cf75b7e23500f37551d0affdf8bab65b8226b57f0b6b9aa6c8fc70} of the entity’s total number of supplies.
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