Are you required to charge GST on invoices issued to the Australian organisation for services rendered under the Services Contract under the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
No, you are not required to charge GST on invoices issued to the organisation for services rendered under the Services Contract because the supply of services is provided to entities located outside Australia and is therefore GST-free under item 3 in the table in subsection 38-190(1) of the GST Act.
You are a company incorporated outside Australia. You have entered into a Services Contract (contract) with an Australian organisation and agreed to supply your services to the Australian organisation under the terms and conditions of the contract. Under the contract you will: • provide your services outside Australia • The results are provided to entities located outside Australia. • Your employees receive the orders for the services from the entities located outside Australia. The Australian organisation has a representative located outside Australia. You do not report or provide information to this representative. Your employees provide information directly to the entities located outside Australia. The entities located outside Australia may choose to share information with the Australian representative at their discretion.
A New Tax System (Goods and Services Tax) Act 1999 section 38-190 Reason for decisions Note : Where the term 'Australia' is used in this document, it is referring to the 'indirect tax zone' as defined in section 195-1 of the GST Act. Summary Your supply of services is made to the Australian organisation and provided to entities located outside Australia. The supply is GST-free under item 3 in the table in subsection 38-190(1) of the GST Act. Detailed reasoning From the fact received your supply of services is made to the Australian organisation and provided to entities located outside Australia. Relevant to your supply is item 3 in the table in subsection 38-190(1) of the GST Act (item 3). Item 3 applies irrespective of whether the recipient is a resident or non-resident of Australia. Unde