Disclaimer
This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1013133128963

Date of advice: 29 November 2016

Ruling

Subject: GST and supply of translating services

Question

Are you required to be registered for the goods and services tax (GST) when you supply your translating services outside Australia?

Advice

No, you are not required to be registered for GST when you supply your translating services outside Australia because your supply of translating services is not connected with Australia and therefore not included when calculating the GST annual turnover for GST registration.

Relevant facts

You an individual that resides outside Australia and are registered for GST. You are not a resident of Australia for Australian income tax purposes.

You have been employed as a contract translator and the translating work is carried out outside Australia and all completed translations are delivered to your supervisor located outside Australia. You are not involved in the further processing of the translations. You do not do any translations in Australia.

Your occasional visits to Australia are recreational only.

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 subsection 9-25(5)

A New Tax system (Goods and Services Tax) Act 1999 section 23-5

Reasons for decision

Question 1

Note: Where the term 'Australia' is used in this document, it is referring to the 'indirect tax zone' as defined in subsection 195-1 of the GST Act.

Taxable supply

GST is payable on a taxable supply. Under section 9-5 of the GST Act, an entity makes a taxable supply if:

However, the supply is not a taxable supply to the extent that it is GST-free or input taxed.

All of the above must be satisfied for your supplies to be taxable supplies.

Connected with Australia

The connection with Australia is one of the elements required to be satisfied before a supply is a taxable supply.

Under subsection 9-25(5) of the GST Act, a supply of anything other than goods or real property is connected with Australia if:

neither paragraph (a) nor (b) applies in respect of the thing;

the thing is a right or option to acquire another thing;

the supply of the other thing would be connected with Australia.

Only one of the paragraphs in subsection 9-25(5) of the GST Act needs to be satisfied for the supply to be connected with Australia.

Goods and Services Tax Ruling GSTR 2000/31 provides guidance on when a supply of services is connected with Australia.

Paragraph 9-25(5)(a) of the GST Act

Under paragraph 9-25(5)(a) of the GST Act the connection with Australia requires that the 'thing' being supplied is 'done' in Australia.

'Thing' is defined in section 195-1 of the GST Act to mean anything that can be supplied or imported. Things other than goods or real property that can be supplied include services, advice, information, rights, obligations to do anything, or any combination of these things.

The meaning of 'done' depends on the nature of the 'thing' being supplied. 'Done' can mean, for example, performed, executed, completed, finished and so on depending on what is supplied.

You advised that your translating services are done in an office located outside Australia. In this instance your supply of the translating services is not connected with Australia as paragraph 9-25(5)(a) of the GST Act is not satisfied. Your supply is outside the scope of GST and therefore not subject to the GST law.

Paragraph 9-25(b) of the GST Act

If the supply of a thing is not connected with Australia because the thing is not done in Australia, the supply is connected with Australia if, under paragraph 9-25(5)(b) of the GST Act the supplier makes the supply through an enterprise that the supplier carries on in Australia.

You advised you are not a permanent resident of Australia and your translating business is carried on in the country you currently reside. In this case you do not make the supply of translating services through a business that you carry on in Australia. In this instance, your supply is not connected with Australia as paragraph 9-25(5)(b) of the GST Act is not satisfied.. Your supply is outside the scope of GST and therefore not subject to the GST law.

Paragraph 9-25(5)(c) of the GST Act

Paragraph 9-25(5)(c) of the GST Act is not applicable as there are no supplies of rights or options to acquire other things where the supply of the other things would be connected with Australia when you make your supply of translating services.

Summary

Your supply of translating services is not connected with Australia. Your supply will be outside the scope of GST and therefore not subject to the GST law

GST registration

Under section 23-5 of the GST Act, you are required to be registered for GST if:

The entity can choose to register for GST if its GST turnover is less than $A75,000.

Goods and Services Tax Ruling GSTR 2001/7 (available at www.ato.gov.au) provides guidance on the meaning of GST turnover.

When calculating your GST turnover, supplies that are not connected with Australia are not included.

Since your supply of translating services is not connected with Australia and this is the only supply you make, this supply will not be included when calculating your GST turnover. You are therefore not required to be registered for GST.

Summary

You are not required to be registered for GST as your supply of translating services is not connected with Australia and therefore not included when calculating your GST turnover. Further the supply is outside the scope of GST.

You can cancel your GST registration since you are not required to be registered for GST. Information on how to cancel your GST registration is available at www.ato.gov.au

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).