| Disclaimer 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 private advice
Authorisation Number: 1052134081455
Date of advice: 12 July 2023
Ruling
Subject: GST - supply of marketing and project management services
Question
Will GST be payable on your supply of marketing and project management services to a non-resident e-commerce company?
Answer
No. GST will not be payable as it will be a GST-free supply under item 2 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) on the basis that:
- you will make an intangible supply to a non-resident who is not in Australia; and
- the supply will not be a supply of work physically performed on goods situated in Australia when the work is done; and
- the supply will not be directly connected with real property situated in Australia; and
- no exclusions from the GST-free status of the supply (as set in subsection 38-190(2), 38-190(2A) or 38-190(3)) will apply.
This ruling applies for the following periods:
1/06/2023 to 31/05/2027
The scheme commenced on:
2 June 2023
Relevant facts and circumstances
You are registered for GST.
You are a resident of Australia. You will carry on a new business venture in Australia.
You will supply marketing and project management services to a non-resident e-commerce company, which sells goods. They do not have a branch or physical presence in Australia.
As far as the transactions covered by this ruling are concerned, you will be assisting them with marketing and project management services only (you will not be providing such assistance to third parties).
The services you will supply to them include the following key deliverables:
• Marketing strategy development - advice and guidance on marketing strategy including planning and driving new campaigns and initiatives. You will provide this advice and guidance to them only
- Branding and positioning - new business development, securing new brands and formulating trade terms with 'these new partners' ('these new partners' will be companies that allow the non-resident e-commerce company to sell products under their (the 'new partners') brand name.
- Digital marketing - providing guidance regarding website optimisation, search engine optimisation and social media marketing. You will provide this guidance to the non-resident e-commerce company only
- Reporting - reporting on website performance, sales and brand feedback and campaign progress. You will provide these reports to the non-resident e-commerce company only
- Project management - facilitating communication amongst team members, shareholders and clients regarding the marketing projects undertaken.
All services are being delivered via digital format, including phone, email, online and virtual communication methods and delivery of reports.
You are performing these services remotely from your home office in Australia.
The fee for these services will be in excess of $75,000 per annum.
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 9-25
A New Tax System (Goods and Services Tax) Act 1999 section 38-190
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).
