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Edited version of your written advice
Authorisation Number: 1051238068879
Date of advice: 15 June 2017
Ruling
Subject: GST and supply of legal services
Question
Is your supply of professional services subject to GST?
Answer
Yes.
Relevant facts and circumstances
You are registered for GST.
You were engaged by an entity to provide professional services to an individual.
The entity and the individual are Australian residents.
You do not have a contract with any other entity in relation to the supply of your services.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 9-5.
Reasons for decision
GST is payable on a taxable supply.
Section 9-5 of the A New Tax System (Goods and Services tax) Act 1999 (GST Act) states:
You make a taxable supply if:
(a) you make the supply for *consideration; and
(b) the supply is made in the course or furtherance of an *enterprise that you *carry on; and
(c) the supply is *connected with the indirect tax zone; and
(d) you are *registered, or *required to be registered.
However, the supply is not a *taxable supply to the extent that it is *GST-free or *input taxed.
(* denotes a term defined under section 195-1 of the GST Act)
You supplied your services for consideration and in the course of carrying on your enterprise. The supply is connected with the indirect zone as your services were performed in the indirect tax zone. You are registered for GST.
All the requirements in paragraphs 9-5(a) to 9-5(d) of the GST Act are satisfied. Therefore, your supply of legal services is a taxable supply unless the supply is
GST-free or input taxed.
The GST-free provisions in section 38-190 of the GST Act do not apply as the entity (to which you made the supply of services) and the individual (to whom you provided your services) are in the indirect tax zone. Your supply of services is not GST-free under these provisions or any other provisions.
There is no provision in the GST Act under which your supply would be input taxed.
Accordingly, your supply of legal services is a taxable supply and is subject to GST.
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