Goods and Services Tax Determination

GSTD 2012/7A2 - Addendum

Goods and services tax: when are supplies of interconnection services made by an Australian resident telecommunication supplier GST-free under item 2 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999?

Addendum

This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends Goods and Services Tax Determination GSTD 2012/7 to include amendments from the Treasury Legislation Amendment (Repeal Day) Act 2015 and update references.

GSTD 2012/7 is amended as follows:

1. Preamble

Omit '(excluding appendixes)'.

2. Table of Contents

Insert Table of Contents:

Table of Contents Paragraph
Background 1
Services covered by this Determination 3
International Direct Dialling calls 6
Video conferencing 7
Toll-free calling 8
Mobile satellite calls 9
Reverse charge calls 10
Ruling 11
Examples 19A
      Example 1 – International Direct Dialling – overseas person calls Australia – use of Australian telecommunication supplier's network 20
      Example 2 – IDD reverse charge call – overseas person is reverse charged for a call from Australia – use of Australian telecommunication supplier's network 23
      Example 3 – Global roaming – employee of Australian subscriber is overseas – makes and receives calls – use of Australian telecommunication supplier's network 26
      Example 4 – Toll-free calling – made by customer of an overseas company while they are in Australia 31
      Example 5 – International call directed through Australia – overseas person makes a call, directed through Australia, to a person in another country – use of Australian telecommunication supplier's network 37
      Example 6 – Facilities managed call centre services – made by an Australian telecommunication supplier to a non-resident 40
      Example 7 – Satellite telephone – overseas person using an Australian satellite phone calls another overseas person from a ship outside Australia – use of the Australian telecommunication supplier's network 45
      Example 8 – Satellite telephone – overseas person calls another overseas person who is on a ship outside Australia – call is routed through Australian telecommunication supplier 48
      Example 9 – Video conference interconnection services – Australian telecommunication supplier supplies video conferencing to overseas telecommunication company 51
      Example 10 – Regional telecommunication Service – overseas telecommunication company subcontracts with an Australian telecommunication supplier to provide necessary Australian telecommunication supplies 54
Date of effect 57

3. Background

Omit 'This question was considered'; substitute 'The question addressed in this Determination was considered'.

4. Paragraph 2

After the paragraph, insert new paragraph 2A:

2A. From 1 July 2015, the term 'Australia' was replaced in nearly all instances within the GST, luxury car tax and wine equalisation tax legislation with the term 'indirect tax zone'. The scope of the term, however, remains the same as the now repealed definition of 'Australia' used in those Acts. This change was made for consistency of terminology across the tax legislation, with no change in policy or legal effect. In this Determination, the 'indirect tax zone' is referred to as 'Australia'.

5. Paragraph 3

Omit 'Internet service provider as defined in Schedule 5 to the Broadcasting Services Act 1992'; substitute 'internet service provider as defined in section 19 of the Online Safety Act 2021'.

6. Paragraph 6

(a) In the heading, omit '(IDD) '.

(b) In the paragraph, omit 'IDD'; substitute 'International Direct Dialling (IDD)'.

7. Paragraph 11

(a) Omit 'item 2 in the table in'; substitute 'table item 2 of'.

(b) Omit footnote 2.

(c) After the paragraph, insert new paragraph 11A:

11A. All further legislative references in this Ruling are to the GST Act, unless otherwise indicated.

8. Paragraph 13

Omit the wording of the paragraph; substitute:

Under subsection 38-190(3) a supply covered by item 2 is not GST-free if:

•
it is a supply under an agreement entered into, whether directly or indirectly, with a non-resident (paragraph 38-190(3)(a)); and
•
the supply is provided, or the agreement requires it to be provided, to another entity in Australia (paragraph 38-190(3)(b)); and
•
for a supply other than an input taxed supply, none of the following applies:

–
the other entity would be an Australian-based business recipient of the supply, if the supply had been made to the other entity;
–
the other entity is an individual who is provided with the supply as an employee or officer of an entity that would be an Australian-based business recipient of the supply, if the supply had been made to it; or
–
the other entity is an individual who is provided with the supply as an employee or officer of the recipient and the recipient's acquisition of the thing is solely for a creditable purpose and is not a non-deductible expense.

9. Paragraph 15

(a) Omit 'GSTR 2005/6'; substitute 'GSTR 2025/1'.

(b) Omit the wording of footnote 7; substitute:

Goods and Services Tax Ruling GSTR 2025/1 Goods and services tax: supplies of things (other than goods or real property) made to non-residents but provided to another entity in Australia. The meaning of 'a supply is provided to another entity' is explained at paragraphs 44 to 48.

(c) In footnote 8, omit 'paragraphs 323 – 425 of GSTR 2005/6'; substitute 'paragraphs 44 to 48 of GSTR 2025/1'.

10. Paragraph 17

Omit 'GSTR 2005/6'; substitute 'GSTR 2025/1'.

11. Paragraph 18

In footnote 9, omit 'GSTR 2005/6 at paragraphs 83 to 136'; substitute 'GSTR 2025/1 at paragraphs 44 to 48'.

12. Paragraph 20

(a) Before current heading, insert new heading ' Examples '.

(b) After the new heading insert new paragraph 19A:

19A. In all the examples:

•
the supply of the interconnection services 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;
•
the non-resident telecommunication supplier acquires the interconnection services in carrying on its enterprise; and
•
the non-resident telecommunication supplier is not registered or required to be registered for GST in Australia.

(c) Omit the wording of the current heading (including footnote 10); substitute:

Example 1 – International Direct Dialling – overseas person calls Australia – use of Australian telecommunication supplier's network

13. Paragraph 22

Above the diagram, insert caption 'Diagram 1: Supply of interconnection services'.

14. Paragraph 25

Above the diagram, insert caption 'Diagram 2: Supply of interconnection services'.

15. Paragraph 30

Above the diagram, insert caption 'Diagram 3: Supply of interconnection services'.

16. Paragraph 36

Above the diagram, insert caption 'Diagram 4: Supply of interconnection services'.

17. Paragraph 39

Above the diagram, insert caption 'Diagram 5: Supply of interconnection services'.

18. Paragraph 43

(a) In footnote 11, after 'treatment in relation to', omit 'example 6'; substitute 'Example 6 of this Ruling'.

(b) In footnote 11, omit 'comparing example 34 and example 35 in GSTR 2005/6'; substitute 'Example 7 in GSTR 2025/1'.

19. Paragraph 44

Above the diagram, insert caption 'Diagram 6: Supply of interconnection services'.

20. Paragraph 47

Above the diagram, insert caption 'Diagram 7: Supply of interconnection services'.

21. Paragraph 50

Above the diagram, insert caption 'Diagram 8: Supply of interconnection services'.

22. Paragraph 53

Above the diagram, insert caption 'Diagram 9: Supply of interconnection services'.

23. Paragraph 56

Above the diagram, insert caption 'Diagram 10: Supply of interconnection services'.

This Addendum applies both before and after its date of issue.

Commissioner of Taxation
13 August 2025

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References

ATO references:
NO 1-WVNF425

ISSN: 2205-6254

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