1 Are you making GST-free supplies under table item 3 of subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 when you receive sponsorship from a recipient who is not in the indirect tax zone when the conference is held, and the conference is held outside the indirect tax zone?
1 Yes, the supplies made by you when you receive sponsorship are GST-free. Question 2 Are you making GST-free supplies under table item 3 of subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 when you charge a management fee to arrange side events for a recipient who is not in the indirect tax zone when the event occurs? Answer 2 Yes, the supplies made by you when you receive a management fee are GST-free. Question 3 Do you make a GST-free supply under table item 4 of subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 when you charge a registration fee for an attendee to attend a conference outside the indirect tax zone? Answer 3 Yes, the supply of the right to attend the conference is GST-free. This ruling applies for the following period : • All tax periods ending on or after XX XXXXX 2025
• You are an Australian registered not-for-profit charity. • You are registered for GST. • Your enterprise includes convening international conferences, forums, and related activities focused on global issues. • You are organising the conference outside the indirect tax zone. • All activities related to the conference occur outside the indirect tax zone. • The registration fee entitles the recipient the right to attend all sessions during the conference day. • All attendance at the conference and the side events is in person in outside the indirect tax zone, there is no online attendance. Sponsorship • The sponsorship received funds for the delivery and operational costs of the conference and related program activities. • A non-resident entity has entered into a sponsorship agreement to sponsor the conference. • The non-resident entity does not have any operational presence, staff, office, or activities in Australia specifically connected to the conference.
• As a sponsor, the non-resident entity will receive the following benefits: Logo to be featured on the conference website and featured on all email marketing Logo to be displayed on venue signage and acknowledgement on sponsor's slide for all sessions A description of the sponsor on the website Six complimentary full conference registrations Satchel inserts Sponsorship of funded Travel Bursaries to be issued to researchers from low and middle-income countries to attend Access to a private meeting room Acknowledgement on the welcome letter of the recipient of the travel bursary that the sponsor has sponsored the individual to attend the conference VIP seating at the opening address Conference committee membership
A New Tax System (Goods and Services Tax) Act 1999 section 38-190
Summary A supply is GST-free if the recipient is not in Australia in relation to the supply when the thing supplied is done and the effective use or enjoyment occurs outside Australia. The non-resident entity does not have a presence in Australia in relation to the conference. All supplies made by you in regard to the conference and the side events are made to recipients who are not in Australia when the thing supplied is done. Furthermore, as the conference and the side events are held outside Australia the effective use or enjoyment of supplies made by you is outside Australia. The supply of a right to attend the conference is a supply of a right that is for use outside Australia, making this also GST-free. Questions 1 & 2 Under subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), certain supplies of things, other than goods or real property, for consumption outside Australia are GST-free. Table item 3 in subsection 38-190(1) of the GST Act provides that a supply is GST-free if: • the supply is made to a recipient who is not in Australia when the thing supplied is done; and
• the effective use or enjoyment of which takes place outside of Australia. One of the requirements for the supplies made by you to be GST-free is that the recipient is not in Australia when the thing being supplied is done. This concept is discussed in detail in the goods and services tax ruling; GSTR 2004/7 Goods and services tax: in the application of items 2 and 3 and paragraph (b) of item 4 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 • when is a 'non-resident' or other 'recipient' of a supply 'not in Australia when the thing supplied is done'? • when is 'an entity that is not an Australian resident' 'outside Australia when the thing supplied is done'? Specifically, paragraph 31 of GSTR 2004/7 clarifies that the recipient is not in Australia in relation to the supply when the thing supplied is done. 31. The requirement that the ... recipient in item 3, is not in Australia when the thing supplied is done is a requirement, in our view, that the ... recipient is not in Australia in relation to the supply when the thing supplied is done.
The non-resident entity does not have a presence in Australia in relation to the supply of the conference. The conference is being held outside Australia, the non-resident entity makes a sponsorship contribution to you to fund the delivery and operational costs of the conference and the related program activities. In return for the sponsorships, the non-resident entity receives various benefits. You also provide services in relation to organising additional events that run adjacent to the conference. Paragraphs 28 - 30 of the goods and services tax ruling, GSTR 2025/2 Goods and services tax: supplies of things (other than goods or real property) where effective use or enjoyment of the supply takes place outside Australia clarifies that the recipient of the supply is the entity to which the supply is made: 28. Paragraph (b) of item 3 requires the place of effective use or enjoyment of a supply to be determined (that is, whether the place is outside Australia). As paragraph (b) refers to the 'effective' use or enjoyment of the supply, it is necessary to enquire as to the entity that has the actual use or enjoyment of the supply.
29. The requirement in paragraph (a) of item 3 refers to the recipient of the supply. The recipient of the supply is the entity to which the supply is made. A supply that is made to a recipient entity may be provided to another entity. If a supply is made to a recipient and provided to another entity, the entity that actually uses or enjoys the supply is that other entity. For example, if a supply of travel services is made to a company (recipient) and the travel is undertaken by an employee of the recipient, the supply is provided to the employee and it is the employee that actually uses or enjoys the supply. 30. A supply is made to a recipient and provided to another entity if, in the performance of a service (or in the doing of some thing), the actual flow of that supply is to an entity that is not the recipient entity with which the supplier made the agreement for the supply. That is, while the contractual flow of the supply is to the recipient entity, the actual flow of the supply is to another entity.
Therefore, it doesn't matter that some of the sponsorship benefits are provided to other parties (such as attendees to the conference). The conference is being held outside Australia, therefore effective use or enjoyment of the supplies made by you to the non-resident entity takes place outside of Australia. Similarly, as the side events which are organised by you on behalf of the non-resident entity occur outside Australia, the effective use or enjoyment of the services provided by you to the non-resident entity takes place outside of Australia. As both requirements of table Item 3 of subsection 38-190(1) of the GST Act have been met, the supplies made by you in relation to sponsorship are GST-free. Similarly, the supply of services by you in organising events are also GST-free. Question 3 Table item 4 in subsection 38-190(1) of the GST Act provides that a supply that is made in relation to rights is GST-free if one of the below conditions are met: • the rights are for use outside Australia; or • the supply is to an entity that is not an Australian resident and is outside Australia when the thing supplied is done.
In return for payment of the registration fee, you provide the right to attend the conference in person outside of Australia. As the conference cannot be attended online, the right to attend is for use outside of Australia. Therefore, as the first requirement of table item 4 in subsection 38-190(1) of the GST Act is met we do not need to consider the second requirement, and the right to attend the conference outside Australia is GST-free.