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Edited version of your written advice
Authorisation Number: 1013138989173
Date of advice: 9 December 2016
Ruling
Subject: GST and the supply of services relating to a global association
Question 1
Are the supplies made by the non-resident entity (NRe) to its Australian customers connected with Australia (the indirect tax zone) under subsection 9-25(5) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), and subject to the goods and services tax (GST)?
Answer 1
Yes. The supplies of the services made by NRe to its Australian customers are connected with Australia, as NRe makes the supplies through a business that it carries on in Australia, and are taxable supplies as all the other requirements of section 9-5 of the GST Act are satisfied.
Question 2
If the supplies of these services are not subject to GST, and NRe had incorrectly treated them as taxable supplies, can the Commissioner confirm that NR's Australian customers are still allowed to claim back the GST as input tax credits (ITC) on previous periods?
Answer 2
Not applicable as the supplies in issue (1) are taxable supplies.