GST and supplies made to a non-resident

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

Is GST payable on the supply of services made by you (an Australian entity) to a non-resident entity (the Country XX Company) under section 7-1 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

No, GST is not payable on the supply of services by you to the Country XX company under section 7-1 of the GST Act. The supply of service is a GST-free supply that meets the requirements of item 2 in the table in subsection 38-190(1) of the GST Act and therefore it is not a taxable supply. Further subsection 38-190(3) of the GST Act has no application. This ruling applies for the following period : 21 February 20XX - 21 February 20XX

You entered into a contract with a company based in the Country XX (the Country XX Company) to provide services. The services include software training, software support and new product feature development. You are registered for GST. The Country XX Company does not have an office nor any employees based in Australia. It will not have any presence in the Indirect Tax Zone (eg: Australia) in any form when you supply your services and will be based in the Country XX at all times. The Country XX Company is not registered for GST. The Country XX Company has clients in Australia and you will be providing training and technical assistance to these clients as part of your contract with the Country XX Company. These Australian clients are business clients and are registered for GST.

Section 7-1 of the A New Tax System (Goods and Services Tax) Act 1999 Section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 Subsection 38-190(1)of the A New Tax System (Goods and Services Tax) Act 1999