Show download pdf controls
  • Non-Australian tax services provider summary

    In conducting the research we were only able to access one non-Australian tax service provider, however based on the following two points, it appears unlikely they are a major user group for the Simplified GST system.

    1. Large firms which have an office in Australia will most likely defer to the local office to manage Australian GST obligations of non-resident businesses.

    Conversations with a large firm established that their Australian arm generally provides any non-resident client represented by the firm internationally with the support to meet their Australian tax obligations. Non-resident businesses are likely to manage the obligations themselves in house.

    Further, all non-resident businesses that we invited to participate in the research indicated that they usually register, report and pay GST without using the services of a tax services provider. Only 2 out of 9 said that they would engage an external service provider for assistance and this would be alongside in-house staff conducting the same activities. The majority, (7 out of 9) met their Australian GST obligation in-house without any external assistance.

    Thus, even though we have a gap in the data and/representation of potential users’ responses from non-Australian tax advisors, research indicates that non-resident business clients would either be represented by an Australian tax advisor or use in-house resources to access the self-service.

    The one non-Australian tax services provider we spoke to was unique in that they provide a reporting function which enables non-businesses to identify and correctly calculate their tax liabilities for various jurisdictions.

    We also received one response from a tax service provider based overseas. This firm is unique in that it provides its clients with real time point of sale calculation of GST or VAT liability in multiple jurisdictions. It also provides its clients with monthly or quarterly reports showing their tax liability for each country they make sales to.

    The firm’s service enables its clients to calculate the correct amount of tax to be reported and paid in various jurisdictions. As such it is an important enabler of self-reporting by non-resident businesses. The importance of this was magnified by the view of many Australian tax intermediaries that most of their non-resident clients would move to self-reporting to lower their costs.

    As the firm delivers its services in many countries it is also a non-resident digital service provider, and therefore has reporting and payment obligations.

      Last modified: 03 May 2018QC 55175