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Edited version of private advice

Authorisation Number: 1052144490582

Date of advice: 20 July 2023

Ruling

Subject: GST - non-resident entity

Question

Is GST payable on the supply of your service to the non-resident entity?

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 out in subsection 38-190(2), 38-190(2A) or 38-190(3)) will apply.

This ruling applies for the following period

2 May 2023 to 1 May 2027

The scheme commenced on:

2 May 2023

Relevant facts and circumstances

You are registered for GST.

You are a resident of Australia.

Your business is searching for investors in Australia and introducing them to an overseas based, non-resident (capital raising). The non-resident is an investment manager. The non-resident does not have a presence in Australia, such as an office or staff.

Your agreement with the non-resident involves you approaching Australian investors to raise money/assets for the non-resident. Once the assets have been raised, the non-resident would then invest the money for the Australian investor. You are paid a retainer by the non-resident and are also eligible for a success fee if the assets are raised. The retainer will be more than $75,000 per annum.

The service you perform for the non-resident is performed in Australia.

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

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