[ELN] ILL and GST

["Kay Winter" <Kay.Winter@ea.gov.au>]

The following is part of aliaNEWS broadcast of 1 July 2000.  We will
decide what to do with ELNgratis when there is a ruling.  I will be on
leave from 3-14 July.  In the meantime please follow the advice about
keeping records.

Kay

______________________________________________________

Kay L Winter
ELN Convenor
Environment Australia
kay.winter@ea.gov.au

ILL voucher denominations
-----------------------
Voucher denominations of $1.20 and $0.30 are available for purchase to
add to the standard $1, $3, $6, $9 and $12 vouchers. This should allow
voucher users to cover the GST component of the most likely range of
charges, (eg. $13.20 or $19.80) and depending how you are required by
your institution to account for the GST, could be used for the loans
from those government departments required to pass on a 1.6% saving -
for example, the standard $12 charge increased to $13 inclusive of
GST.
http://www.alia.org.au/membership/ill-vouchers.html 

Handling fee on books of vouchers
-----------------------
Our document on The New Tax System advised members that the GST would
be
payable on the handling fee for the issue (including redemption) of
voucher books but not on the purchase value of the book. In
considering
a related matter, the Tax Office reviewed that interpretation and
provided oral advice that the GST did not apply to the handling fee.
This advice coincided with the issue of the membership renewal
statements - so as a precaution and in anticipation of written advice,
we did not include the GST on the handling fee.

The ATO has now reverted to our original position, so could all
members
ordering books of vouchers please note that the GST-inclusive price
for
each book of $12, $9, $6, $3, $1 and $1.20 vouchers is $16.50 per
book;
for a book of $0.30 vouchers is $5.50; and where a book of $1.20 is
purchased with a book of $12 vouchers the handling fee of $16.50
includes both books. We will be reviewing the demand for a $13.20 book
and other denominations in the future.

GST on ILL transactions
-----------------------
As advised in our New Tax System document, the GST applies to each ILL
transaction for which there is a charge. In the June inCite, we
advised
that ALIA was seeking a ruling from the Tax Office that GST would not
be
payable on those co-operative resource-sharing arrangements within the
sector where there has not been a charge for interlibrary lending. We
always anticipated that there would be difficulties in obtaining a
general ruling applying to the sector - and this has been the case.
However, we are now optimistic that there is support within the Tax
Office for such a ruling, but it is unlikely that written advice on
the
ruling will be received within the next week. We will broadcast the
decision as soon as we are made aware of the ruling.

In the meantime, it may be prudent to keep a record of such loans in
case our application is rejected, or if you wish to proceed with
obtaining your own ruling for your network you may do so by stating
your
case in an e-mail to: replyin5@ato.gov.au. Rulings are based on the
information provided, so it is important that it be factual and to the
point and indicates that the service is provided free of charge. The
original intention of replyin5 was a reply within five days - but you
need to be aware when making a submission that the 'five' is now
closer
to weeks rahter than days.

A number of libraries have provided us with an outline of how they are
managing the GST and ILL. These will be added to our website very
soon.