The draft update—GSTR 2002/2 reflects changes applicable to cross-border supplies and in relation to digital currency, includes new references relating to financial supplies, and contains some proposed changes to modernise certain parts of existing guidance. It also contains a new “buy-now pay-later” example that applies the ATO’s longstanding view on interest‑free loans as well as a number of updates to indicate when certain foreign currency-denominated products and overseas payment products are GST-free.
1) what does and doesn’t constitute a financial supply;
2) the types of acquisitions that entitle taxpayers to a reduced input tax credit;
3) the financial acquisitions threshold and the application of reduced input tax credits; and
4) the application of reverse charges on offshore intangible supplies.
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