The draft QWBA provides additional guidance on how the compulsory zero-rating rules for land apply to the supply of standing timber and other unsevered crops. 

The draft item essentially concludes the supply of standing timber and other unsevered crops wholly or partly consist of land when the agreement is entered into, it is contemplated that the purchaser will derive a benefit from the further growth of the crop sold. Thus, the compulsory zero-rating rules will apply, assuming the supply is between GST registered persons and the recipient acquires the standing timber or crops with the intention of using them to make taxable supplies. 

In addition, the draft QWBA clarifies that a supply will be standard rated when the purchaser does not derive a benefit from the further growth of the crop sold, i.e., the process of growth is complete, the contract creates an obligation to immediately sever the crop or remove the crop within a short timeframe. 

CA ANZ supports the publication of the finalised item which will be a very useful resource and recommends some aspects of the item be reviewed and clarified with additional references.