Edited version of private ruling

Authorisation Number: 1011677404299

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Ruling

Subject: international supply of services

Question:

Do you have to include GST when we bill or invoice our client in country X for our services rendered each month?

Answer: No.

You do not have to include GST when you bill or invoice your client in country X for your services rendered each month.

Relevant facts:

You are registered for Goods and Services Tax (GST).

You are a publishing company.

You provide a service of organising and publishing technical journals and proceedings in English language for international conferences or symposiums held in country X for your client.

You engage a printing company in country X to print the publication for your clients in country X. At the end of the month and upon services rendered, you send a bill or invoice to the client in country X. Payment is then made by your client in country X to your bank account via telegraphic transfer.

You have advised that your services are rendered overseas and you engage a printing company in country X to handle the printing of your publication.

Relevant legislative provisions:

A New Tax System (Goods and Services Tax) Act 1999 subsection 38-190(1)

Reasons for decision

Taxable supply

Under section 9-5 of the GST Act, the suppliers make a taxable supply if:

(a) they make the supply for consideration; and

(b) the supply is made in the course or furtherance of an enterprise that they carry on; and

(c) the supply is connected with Australia; and

(d) they 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.

From the facts given, your supply organising the publishing of certain documents in English language for international conference's satisfies all the requirements of paragraphs (a) to (d) of section 9-5 of the GST Act as follows:

· You make the supply of services to your client and in return you receive consideration by way of payments;

· You make the supply in the course or furtherance of your business;

· You make the supply through an enterprise that you carry on in Australia (and therefore the supply is connected with Australia); and

· You are registered for GST in Australia.

Hence, your supply of organising the publishing of certain documents in English for international conferences is taxable to the extent that it is not GST-free or input taxed.

Your services of organising the publishing of certain documents in English language for international conference's does not satisfy the input taxed provisions under the GST Act. The GST-free provisions should also be taken into consideration.

GST-free

Of most relevance to this situation are items 2 (a) and (b) in the table in subsection 38-190(1) of the GST Act (Item 2) which allow certain supplies to be made GST-free.

Under item 2 in the table in subsection 38-190(1) of the GST Act (Item 2), a supply is GST-free where it is:

a supply that is made to a *non-resident who is not in Australia when the thing supplied is done; and

(a) the supply 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; or

(b) the *non-resident acquires the thing in *carrying on the non-resident's *enterprise, but is not *registered or *required to be registered.

It is noted, that the supply of your services is neither a supply of work physically performed on goods situated in Australia nor a supply directly connected with real property situated in Australia.

Therefore, the supply of your services rendered to your overseas client of printing certain documents in the English language for use in conferences held in country X is GST-free under Item 2 (a) as your supply is made to a non-resident who is not in Australia at the time of the supply.

Your supply may also be GST free under item 2 (b) if the non resident acquiring your services does so in the course of carrying on its enterprise but is not registered or required to be registered for GST. There is not enough information in your submission for us to ascertain your client's status in this regard.

For more information on the application of subsection 38-190(1) please refer to the Goods and Services Tax Ruling GSTR 2000/31 paragraph 23 which is available at www.ato.gov.au.