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Edited version of your written advice
Authorisation Number: 1012710201384
Ruling
Subject: GST and supply of services to a non-resident entity
Question
Is goods and services tax (GST) payable on your supply of services to a non-resident entity?
Answer
No.
Under item 2 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 (item 2), a supply that is made to a non-resident who is not in Australia when the thing supplied is done is GST-free if:
(a) the supply is neither a supply of work physically performed on goods situated in Australia when the work is done nor a supply directly connected with real property situated in Australia; or
(b) the non-resident acquires the thing in carrying on the non-resident's enterprise but is not registered or required to be registered.
Based on the information provided, your supply of services to the non-resident entity is GST-free as it is covered by item 2. Therefore, GST is not payable on your supply of these services to the non-resident entity.
Relevant facts and circumstances
You are registered for GST.
You provide services to a non-resident entity. All your services are done in Australia.
The non-resident entity does not have a presence in Australia. It does not have a permanent establishment, or an agent, in Australia through which it carries on its business. You deal directly with the non-resident entity overseas in relation to your supply of services.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 9-5,
A New Tax System (Goods and Services Tax) Act 1999 section 38-190 and
A New Tax System (Goods and Services Tax) Act 1999 section 38-355.
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