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[ELN] Update of ELN gratis list and GST



Yesterday I updated the ELN gratis list.  A couple of NSW Agriculture
Libraries were removed and a number of others changed email addresses,
phones, fax etc.  Please make sure your ILL officers is using the new
list.

I would also like you to considered whether we want to continue with
the gratis list.  At Environment Australia, we have been told that the
voucher system as currently proposed by ALIA will not meet ATOs
accounting requirements.  I also understand that we will have to pay GST
on gratis ILL because it is a service with a value.  If anybody has had
advice to the contrary please let me know.

The following are some details on the matter from ALIA and NLA.

Regards 

Kay Winter
ELN Convenor
kay.winter@ea.gov.au 

____________________________________________________________



16 February from aliaNEWS broadcast

ALIA inter-library loan vouchers and the GST 
              The Association will continue to operate the voucher
system for the benefit of the
              sector following the introduction of the GST on 1 July
2000. The Association is
              aware that a number of organisations have been advised by
their finance section
              that under the New Tax System they will be required to
operate an invoice and
              cash payment system rather than use ALIA inter-library
loan vouchers. We
              recommend that Voucher and Institutional members clarify
payment and reporting
              requirements with their finance sections. 

              To assist those continuing to use the voucher system the
Association is
              implementing the following changes. In addition, in early
April, the Association
              will write to each Institutional and Voucher member with
suggestions for
              record-keeping and reporting to assist them and their
finance sections in the
              setting up of a system to use the vouchers and meet GST
requirements. 

              GST payable on vouchers 
              A ten per cent GST will be payable to ALIA (the supplier)
on the handling fee
              and ALIA will generate a tax invoice/receipt. It is
important to remember that
              when purchasing the voucher from ALIA, you are purchasing
currency - and this
              is why GST is only paid on the service of issuing the
vouchers to you. However,
              when the voucher is used to pay for a service, that is an
inter-library loan, it is the
              value of the service (supply) which attracts GST. 

              The GST will normally apply to each inter-library loan
transaction. As long as the
              service provided is not considered a GST-free supply, the
supplier will be
              required to charge GST on the value of the supply and to
generate a tax
              invoice/receipt. 

              For example, assume Library 1 purchases copying services
to the value of $12
              from Library 2. Library 2 will be required to charge
Library 1 $13.20, being $12
              plus ten per cent GST. Library 1 will pay for the service
with vouchers to the
              value of $13.20. Library 2 will remit $1.20 to the ATO
through its Business
              Activity Statement. Library 1 will be entitled to an
input tax credit of $1.20. 

              Voucher denominations 
              Inter-library loan vouchers are currently available in
$1, $3, $6, $9 and $12
              denominations. For the purpose of handling the GST
component, ALIA will have
              available for purchase new vouchers which include the GST
(for example, $1.10,
              $3.30, $6.60, $9.90, $13.20) for use after 1 July 2000.
ALIA will also make
              available for purchase vouchers for the GST component
only, to add to those
              vouchers currently in circulation. 

              Voucher redemption 
              The voucher will be redeemed for its full face (currency)
value. Every voucher in
              circulation is guaranteed by the Association to be
redeemed at full face value. 

              Further issues 
              ALIA is pursuing a number of related issues with the
sector: 

                   future interlending and document delivery charges
and value of vouchers 
                   interlending and document delivery guidelines 
                   record-keeping requirements for the Business
Activity Statement (the
                   Government is yet to finalise the requirements of
the BAS) 
                   sample tax invoice/receipt for inter-library loan
(bearing in mind that the
                   inter-library loan may not be fulfilled by the first
recipient) 
                   GST application to contra deal inter-library loan
arrangements

              Further information 
              For more information about the impact of GST on the
inter-library voucher
              system, please contact Lyndall Merton,
lyndall.merton@alia.org.au, of the finance
              section at ALIA National Office.

____________________________________________________________

22 Feb 2000 from Kinetica-L

>From 1 July 2000 the National Library of Australia Document Supply
Service
will cease accepting ALIA vouchers as payment for loans and documents
supplied.

This decision has been taken because of the difficulty of accounting
for GST
where payment has been made by vouchers.

The National Library has been advised by the Australian Taxation Office
that
GST will be payable on all loans and documents supplied. Most libraries
will
be able to reclaim any GST paid from the Australian Taxation Office,
either
as input credits or as exempt organisations. However, to do this
appropriate
invoices and payment records will need to be kept. This cannot be done
in
Document Supply Service's current manual environment, and would  be
best
handled by the Library's central accounting system, Finance 1.
However,
Finance 1 cannot accept payment by vouchers.

>From 1 July 2000 libraries using the National Library of Australia
Document
Supply Service will be able to choose from the following methods of
payment:

*	Kinetica Document Delivery Payments Service
*	Monthly account (payable by cheque or credit card)
*	Credit card (credit card details supplied with request)

The National Library of Australia Document Supply Service will
communicate
with client libraries with further details.

If you wish to explore the use of any other method of payment, or
require
further information, please contact Patricia Woods, phone (02) 6262
1421,
fax (02) 6273 2719, email: pwoods@nla.gov.au 


Charu Sood
Director
Document Supply Service
National Library of Australia