Selling goods into Australia from a non-treaty country without a physical presence in Australia

In this section we discuss your tax obligations if all of the following apply:

  • you are a resident entity of a country that does not have a tax treaty with Australia
  • you export goods to Australia without having a physical presence in Australia, such as an agent, subsidiary or permanent establishment
  • you don't employ staff in Australia.

You are selling into Australia without a physical presence if you sell goods over the internet.

End of attention

Under these circumstances, you will have the following tax obligations:

  • Income tax - You need to work out the source of your income from an international transaction involving Australia to decide if you have Australian income tax obligations - refer to Doing business in Australia - what you need to know.
  • GST - You may be liable for GST, which is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia - refer to Supplying goods and services in Australia - goods and services tax.
  • Other tax obligations - If you are exporting goods to Australia by selling to an Australian resident entity on a free on board (FOB) basis, this may be considered an importation by the Australian entity. This means you may not have Australian tax obligations - rather, your Australian customer will have tax obligations relating to the importation.
    Last modified: 22 Feb 2011QC 18431