Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Bill

  • enacted
68B New section 85B inserted (Certain contracts entered into before 1 October 2016)

After section 85, insert:

85B Certain contracts entered into before 1 October 2016

(1)

This section applies to a supply of remote services when

(a)

the contract under which the supply is made is for a fixed term that starts before 1 October 2016 and ends after that date; and

(b)

the contract provides for periodic payments that are treated under section 9(3)(a) as successive supplies; and

(c)

under the contract, the consideration for the supply is set or reviewed for periods of 396 days or less during the term of the contract; and

(d)

section 8(3)(c) would apply in relation to the supply in the absence of this section.

(2)

Despite section 9(3)(a), for the period described in subsection (3), the supplier of the remote services may choose to treat the periodic payments as not successively supplied for successive parts of the period of the contract. The election is made in a return for the relevant taxable period.

(3)

The period starts on 1 October 2016 and ends on the earlier of

(a)

the date on which the term of the contract ends; and

(b)

the date that is 396 days after the date on which the contract was entered into.