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Edited version of your written advice
Authorisation Number: 1013093944303
Date of advice: 20 September 2016
Ruling
Subject: Supplies done in Australia by a non-resident
Question 1
Is the supply of services done in Australia by Entity A (you) a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?
Answer
Yes.
Relevant facts and circumstances
You have moved your business to outside of Australia but still operate in Australia.
You provide professional services to business in Australia. Sometimes you, a Director of Entity A, will travel to Australia from outside of Australia to provide your services. You also use Australian trainers to provide this training.
The Australian business' you provide your professional training services to are invoiced by you from Country X but pay you in Australian dollars into an Australian bank account.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 section 9-5, and
A New Tax System (Goods and Services Tax) Act 1999 subsection 9-25(5).
Reasons for decision
Issue 1
All references to Australia mean the indirect tax zone.
Question 1
You make a taxable supply where you satisfy section 9-5 of the GST Act in that you make a supply for consideration, the supply is made in the course or furtherance of your enterprise that you carry on, the supply is connected with Australia, and you are registered for GST.
However, the supply is not a taxable supply to the extent that it is GST-free or input taxed.
When you make a supply of your professional services in Australia you will make a supply for consideration, the supply will be made in the course or furtherance of an enterprise that you carry on, and you are registered for GST in Australia. Hence paragraphs 9-5(a), (b) and (d) of the GST Act are satisfied.
Therefore, it remains to be determined if the supply is connected with Australia for paragraph 9-5(c) of the GST Act to be met.
Subsection 9-25(5) of the GST Act provides that a supply of anything other than goods or real property is connected with Australia if:
(a) the thing is done in Australia; or
(b) the supplier makes the supply through an enterprise that the supplier carries on in the Australia; or
(c) ….
Where you provide professional services in Australia paragraph 9-25(5)(a) of the GST Act will be satisfied, as the services will be done in Australia even though they are provided through an entity that is resident in Country X.
Therefore, paragraph 9-5(c) of the GST Act is satisfied and your supply will be taxable.