GST and an Australian agent's entitlement to input tax credits for an acquisition made by a non-resident entity

Is the entity, a resident agent acting for a non-resident, entitled to input tax credits under section 57-10 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when a non-resident makes a creditable acquisition through the entity?

Yes, the entity is entitled to input tax credits under section 57-10 of the GST Act when a non-resident makes an acquisition in Australia through the entity.

The entity is a resident agent. A non-resident makes a creditable acquisition, as defined in section 11-5 of the GST Act, through the entity.

The entity is registered for goods and services tax (GST). The non-resident is also registered for GST.

Under section 57-10 of the GST Act, if a non-resident makes a creditable acquisition or creditable importation through a resident agent: • the agent is entitled to the input tax credit on the acquisition or importation; and • the non-resident is not entitled to the input tax credit on the acquisition or importation.

Under section 57-20 of the GST Act, a resident agent who is acting as agent for a non-resident is required to be registered for GST if the non-resident is registered or required to be registered for GST.

The non-resident makes a creditable acquisition in Australia through the entity, a resident agent. In addition, both the entity and the non-resident are registered for GST. Therefore, under section 57-10 of the GST Act, the resident agent is the entity that is entitled to the input credit on the acquisition, not the non-resident. [Note 1: A resident agent is required to hold a valid tax invoice for a creditable acquisition that a non-resident entity makes through it. The tax invoice meets the requirement to show the recipient's name and address or Australian Business Number (ABN) if it shows either: • the non-resident's name and address or ABN; or • the resident agent's name and address or ABN. Note 2: When a non-resident makes a creditable acquisition in Australia that is not through a resident agent, the non-resident is entitled to the input tax credits itself. The non-resident is required to hold a valid tax invoice for these creditable acquisitions.]