Edited version of your written advice

Authorisation Number: 1051348056652

Date of advice: 13 March 2018

Ruling

Subject: GST and sales of tickets for a conference and supply of sponsorships

Question 1

Does you need to charge the Australian goods and services tax (GST) when you sell tickets for the conference that you will hold in Australia under the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Advice

From the information received, you will make two distinct supplies when you sell tickets for the conference that you will hold in Australia and the GST status of each supply is:

1. Supply of food (refreshments, snacks and lunch).

The supply of food to all attendees will be a taxable supply under section 9-5 of the GST Act where you are required to be registered for GST or choose to register for the Australian GST.

Where you are not required to be registered for GST and do not choose to register for the Australian GST, your supply of food will be outside the scope of GST.

2. Supply of entry to the conference.

Australian attendees

Where the Australian attendees are GST registered entities carrying on their businesses in Australia and the acquisition is for business purposes, the supply of entry to the conference to them is not connected with Australia under item 1 in the table in section 9-26 of the GST Act (item 1) The supply is outside the scope of GST and is not included when determining whether you are required to be registered for GST.

You have to ensure that you hold sufficient information before treating your supply to the GST registered Australian businesses as not connected with Australia under item 1. For example you can ask the Australian business to provide in writing its Australian business number (ABN) and whether it is registered for GST.

Where the Australian attendees (businesses and/or individuals) are not registered for GST, the supply of entry to the conference to them is connected with Australia under paragraphs 9-25(5)(a) and/or 9-25(5)(d) of the GST Act. The supply of entry to the conference will be subject to GST where you are required to be registered for GST or choose to register for GST.

Overseas attendees

Where the overseas attendees are non-residents that carry on a business outside Australia and the acquisition is for the purposes of the overseas business, the supply of entry to the conference to the non-residents is not connected with Australia under item 2 in the table in section 9-26 of the GST Act (item 2). The supply is outside the scope of GST and is not included when determining whether you are required to be registered for GST.

You have to ensure you have sufficient information that the requirements in item 2 are satisfied before treating your supply to these overseas attendees as not connected with Australia

Where the overseas attendees are non-residents that do not carry on any business activity, the supply of entry to the conference will be connected with Australia under paragraph 9-25(5)(a) of the GST Act. The supply will be subject to GST where you are required to be registered for GST or choose to register for GST.

Where your sale of the tickets for the conference supply is a mixed supply of taxable and non-taxable supplies, you will need to apportion the fees collected for the sale between the taxable and non-taxable supplies. Goods and Services Tax Ruling GSTR 2001/8 which is available at ato.gov.au will be of assistance to you. The link for this ruling is http://law.ato.gov.au/atolaw/print.htm?DocID=GST%2FGSTR20018%2FNAT%2FATO%2F00001&PiT=99991231235958&Life=20140320000001-99991231235959

Question 2

Do you need to charge the Australian GST for your supply of sponsorship in regard to the conference that will be held in Australia?

Advice

You will make three distinct supplies when you supply the sponsorship packages to the sponsors and the GST status of each supply is:

1. Supply of food’

The supply of food to the sponsors at premises in Australia is connected with Australia.

The supply of food will be subject to GST if you are required to be registered for GST or choose to register for GST.

If you are not required to be registered for GST and do not choose to register for GST, the supply of food will not be subject to GST.

2. Supply of entry to the conference

Australian sponsors

You advised that the Australian sponsors will be GST-registered businesses.

Where the supply of entry to the conference is made to GST registered businesses, the supply of the entry is not connected with Australia under item 1 in the table in section 9-26 of the GST Act. The supply will be outside the scope of GST and is not included when determining whether you are required to be registered for GST.

You have to ensure that you hold sufficient information before treating your supply to the GST registered Australian sponsors as not connected with Australia under item 1. For example you can ask the Australian business to provide in writing its Australian business number (ABN) and whether it is registered for GST.

Non-resident sponsors

Where the non-resident sponsors are businesses that carry on their business activity outside Australia, the supply of entry to the conference to them is not connected with Australia under item 2 in the table in section 9-26 of the GST Act. The supply will be outside the scope of GST and is not included when determining whether you are required to be registered for GST.

You have to ensure you have sufficient information that the requirements in item 2 are satisfied before treating your supply to these overseas sponsors as not connected with Australia. You can refer to Goods and Services Tax Ruling GSTR 2017/1 which provides guidance on what evidence a supplier can hold when making supply to a GST registered Australian business. The link for this ruling is https://www.ato.gov.au/law/view/document?DocID=GST/GSTR20171/NAT/ATO/00001

3. Supply of advertising

Australian sponsors

You advised that the Australian sponsors are GST registered businesses.

Where the Australian sponsors are GST registered entities carrying on their businesses in Australia the requirements in item 1 and subsection 9-26(2) of the GST Act will be satisfied. In this instance, the supply of advertising to these GST registered Australian businesses is not connected with Australia. The supply is outside the scope of GST and is not included when determining whether you are required to be registered for GST.

You have to ensure that you hold sufficient information before treating your supply to the GST registered Australian sponsors as not connected with Australia under item 1. For example you can ask the Australian business to provide in writing its Australian business number (ABN) and whether it is registered for GST.

Overseas sponsors

Where the overseas sponsors are non-residents that carry on a business outside Australia and the acquisition of the advertising is for the purposes of the overseas business, the supply of advertising to the non-residents is not connected with Australia under item 2. The supply is outside the scope of GST and is not included when determining whether you are required to be registered for GST.

You have to ensure you have sufficient information that the requirements in item 2 are satisfied before treating your supply to these overseas sponsors as not connected with Australia. You can refer to Goods and Services Tax Ruling GSTR 2017/1 which provides guidance on what evidence a supplier can hold when making supply to a GST registered Australian business. The link for this ruling is https://www.ato.gov.au/law/view/document?DocID=GST/GSTR20171/NAT/ATO/00001

Where your supply is a mixed supply of taxable and non-taxable supplies, you will need to apportion the fees collected for the sponsorship between the taxable and non-taxable supplies. Goods and Services Tax Ruling GSTR 2001/8 which is available at ato.gov.au will be of assistance to you.

Question 3

Are there any implications for selling the tickets via an online payment method? As far as you know the online payment method cannot provide tax invoices, however maybe you can send these through to people who have purchased tickets?

Advice

The online payment method is a payment processing method you use to collect the sale of your tickets and will not have any implications to the GST status of your supply of tickets to the attendees.

Where you are registered for the Australian GST and make a taxable sale of more than $82.50 (including GST), your GST-registered customers need a tax invoice from you to be able to claim a credit for the GST in the purchase price. If a customer asks you for a tax invoice, you must provide one within 28 days of their request.

How you will provide your tax invoices to your customers is a business decision. For information on what should be in a tax invoice refer to question 3 in the ‘detailed reasoning’.

Question 4

If you register for the simplified GST are you limited for claiming back GST paid for example the conference venue bill you received includes GST? Can GST for the hotel bill be subtracted from the GST ticket sales?

Advice

If you register for the simplified GST you will not be able to claim back any GST paid on acquisitions related to the running of the conference in Sydney.

If you would like to claim the GST paid you will have to register for the standard GST registration with an ABN. Information on how to register for the standard GST registration with an ABN and what evidence to provide is at https://www.ato.gov.au/business/international-tax-for-business/in-detail/doing-business-in-australia/australian-gst-registration-for-non-residents/

The link to register for the standard GST registration with an ABN is https://abr.gov.au/For-Business,-Super-funds---Charities/Applying-for-an-ABN/ABN-for-businesses-outside-Australia/

When you are registered for GST, your entitlement to a GST credit will be offset against your GST liability at the time you complete your activity statement which will be issued to you before the due date for lodgement and payment of GST (if applicable) to the Australian Taxation Office (ATO).

Relevant facts

You are a company located outside Australia and currently are not registered for the Australian GST.

You will run a conference in Australia. There will only be one type of ticket for the conference. The ticket will provide a two day pass for the conference, coffee, snacks, lunch and a goody bag. The goody bag will contain a couple of pens, some chocolate and a coffee mug.

For refreshment tea, coffee and water will be provided at the conference venue. For lunch sandwiches and two small snacks for morning and afternoon will be provided at the conference venue. There will be no food or drink provided for the opening and closing ceremony.

The conference will be mostly attended by people who have had their tickets paid by their employer. Most Australian attendees will be working for companies who are GST registered.

Some people attending the conference will be from outside Australia and will attend the conference for business purposes.

Sponsorship

There are four types of sponsorship packages available for the conference. The sponsors will mostly be from Australian companies and would certainly be GST registered. There will be some sponsorship from other countries.

The sponsorship packages include advertising of the sponsor’s business at the conference’s venue and provision of conference tickets.

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 23-5

Reasons for decision

Note: Where the term ‘Australia’ is used in this document, it is referring to the ‘indirect tax zone’ as defined in section 195-1 of the GST Act.

Question 1 –sale of tickets

Characterisation of supply

Before we determine the GST status of the sale of the tickets we first need to determine the character of the supply.

Where a transaction comprises a bundle of features and acts, it may be necessary to characterise what is supplied to determine whether a particular provision applies in whole or in part.

The characterisation should be undertaken in a manner that is consistent with the object of the particular statutory provision in issue. For example, if a provision specifically requires different treatment of two components of a transaction, this will mean that the two components must necessarily be separately recognised.

According to paragraph 21 in Goods and Services Tax Ruling GSTR 2001/8, you may choose to treat something (or things taken together) as integral, ancillary or incidental if the consideration that would be apportioned to it (if it were a separately identifiable part of a mixed supply) does not exceed the lesser of $3.00 or 20% of the consideration for the total supply.

However, you cannot use the approach in paragraph 21 where a provision of the GST Act specifically requires you to treat a part of a supply in a particular way, regardless of its scale or connection with the supply. For example a supply of food as part of an excursion may otherwise be considered to be integral, ancillary or incidental to the supply of the excursion, but paragraph 38-90(2)(b) of the GST Act specifies that such food will not be GST-free. This means that the consideration for the field trip requires apportionment (paragraph 23 in GSTR 2001/8).

Paragraph 38-3(1)(a) of the GST Act specifies that a supply of food is not GST-free if it is a supply of food for consumption on the premises from which it is supplied. Food is defined in subsection 38-4(1) of the GST Act and includes food for human consumption, beverages for human consumption. Under subsection 38-4(2) of the GST Act beverages includes water.

Attendees when purchasing tickets will receive the following:

● two days pass to attend the conference

● refreshments, snacks and lunches

● a goody bag.

Taking into consideration all the facts given and subsection 38-3(1) of the GST Act we consider that there are two distinct supplies that you will make when selling the tickets for the conference:

1. A supply of food (refreshment, snacks and lunches)

2. A supply of entry to the conference. The goody bags that the attendees will receive is incidental to the supply of entry to the conference since they contribute or complement the presentations carried on by the presenters during the conference rather than constituting for the attendees as an aim in itself.

The next step is to determine the GST status of the two supplies.

GST status of supplies

GST is payable on a taxable supply. A supply is a taxable supply under section 9-5 of the GST Act if:

a. the supplier makes the supply for consideration; and

b. the supply is made in the course or furtherance of an enterprise that the supplier carries on; and

c. the supply is connected with Australia; and

d. the supplier is registered or required to be registered for GST.

However the supply is not a taxable supply to the extent that it is GST-free or input taxed.

All of the above must be satisfied for your supply of legal services to be a taxable supply.

From the facts given you satisfy paragraphs 9-5(a) and (b) of the GST Act when you make the two supplies as you will make the supplies for consideration and you will make the supplies in the course of a business that carry on.

The next step is to consider the other requirements in section 9-5 of the GST Act.

Paragraph 9-5(c) of the GST Act –supply is connected with Australia

1. Supply of food

‘Goods’ is defined in section 195-1 of the GST Act as any form of tangible personal property. For GST purposes a supply of drinks and meals is a supply of goods.

A supply of goods is connected with Australia if the goods are delivered or made available in Australia to the recipient of the supply under subsection 9-25(1) of the GST Act.

In this instance, the supply of food for the conference (refreshments, snacks and lunches) is connected with Australia under subsection 9-25(1) of the GST Act as it is made available to the attendees on premises from which it is supplied in Australia.

A supply of drinks and meals for consumption on the premises from which it is supplied in Australia is not an input taxed supply under Division 40 of the GST Act and is not a GST-free supply under paragraph 38-3(1)(a) of the GST Act.

Accordingly, the supply of food to all attendees will be a taxable supply under section 9-5 of the GST Act where you are required to be registered for GST or choose to register for GST.

Where you are not required to be registered for GST and do not choose to register for GST, the supply of food will be outside the scope of GST.

2. Supply of entry to the conference

We consider for GST purposes a supply of entry to the conference is a supply of services.

Under subsection 9-25(5) of the GST Act, a supply of things other than goods or real property (such as services) is connected with Australia if:

a) it is done in Australia; or

b) the supplier makes the supply through an enterprise that the supplier carries on in Australia; or

c) it is a right or option to acquire another thing that would be connected with Australia; or

d) the recipient of the supply is an Australian consumer.

Your supply will be connected with Australia if any one of the above four paragraphs is satisfied.

Relevant to your supply of entry to the conference is paragraph 9-25(5)(a) of the GST Act.

Paragraph 9-25(5)(a) of the GST Act

Under paragraph 9-25(5)(a) of the GST Act the connection with Australia requires that the 'thing' being supplied is 'done' in Australia.

If the ‘thing’ being supplied is a service, the supply of that service, is typically done where the service is performed.

As the conference will be held in Australia, the supply of entry to the conference is connected with Australia under paragraph 9-25(5)(a) of the GST Act.

However, it is relevant to consider section 9-26 of the GST Act since under this section some supplies that are done in Australia by non-residents are not connected with Australia where the requirements in section 9-26 of the GST Act are satisfied. In this instance, the supply made by the non-resident supplier is outside the scope of GST.

Section 9-26 of the GST Act

Under item 1 in the table in subsection 9-26(1) of the GST Act (item 1) a supply of anything other than goods or real property is not connected with Australia if:

● the supplier is a non-resident who does not make the supply through an enterprise that the supplier carries on in Australia; and

● the supply of the thing is done in Australia; and

● the recipient is an Australian based business recipient of the supply.

Subsection 9-26(2) of the GST Act defines ‘Australian-based business recipient’ as follows:

(2) An entity is an Australian-based business recipient of a supply made to the entity if:

a) the entity is registered; and

b) an *enterprise of the entity is *carried on in the indirect tax zone; and

c) the entity’s acquisition of the thing supplied is not solely of a private or domestic nature.

(* denotes a defined term in section 195-1 of the GST Act)

Under item 2 in the table in subsection 9-26(1) of the GST Act (item 2), a supply of anything other than goods or real property between non-residents is not connected with Australia if:

● the supplier is a non-resident who does not make the supply through an enterprise that it carries on in Australia; and

● the supply of the thing is done in Australia; and

● the recipient is a non-resident that acquires the thing supplied solely for the purpose of the enterprise that it carries on outside Australia.

From the information received the attendees are Australian residents and non-residents of Australia. They would be employees working for companies who have paid for the tickets.

Australian attendees

Where the Australian attendees are GST registered entities carrying on their businesses in Australia and the acquisition of the tickets is for business purposes the requirements in item 1 and subsection 9-26(2) of the GST Act will be satisfied. In this instance, the supply of entry to the conference to these GST registered Australian businesses is not connected with Australia. The supply is outside the scope of GST and is not included when determining whether you are required to be registered for GST.

You have to ensure that you hold sufficient information before treating your supply to the GST registered Australian businesses as not connected with Australia under item 1. For example you can ask the Australian business to provide in writing its Australian business number (ABN) and whether it is registered for GST.

Where the Australian attendees (businesses and/or individuals) are not registered for GST, the supply of entry to the conference to them is connected with Australia under paragraphs 9-25(5)(a) and/or 9-25(5)(d) of the GST Act. In this case section 9-26 of the GST Act does not apply as the requirements in that section will not be satisfied. The supply of entry to the conference will be subject to GST where you are required to be registered for GST or choose to register for GST since the supply of entry to the conference in Australia is not GST-free or input taxed.

Overseas attendees

Where the overseas attendees are non-residents that carry on a business outside Australia and the acquisition of the tickets is for the purposes of the overseas business, the supply of entry to the conference to the non-residents is not connected with Australia under item 2. The supply is outside the scope of GST and will be not included when determining whether you are required to be registered for GST.

You have to ensure you have sufficient information that the requirements in item 2 are satisfied before treating your supply to these overseas attendees as not connected with Australia. You can refer to Goods and Services Tax Ruling GSTR 2017/1 which provides guidance on what evidence a supplier can hold when making supply to a GST registered Australian business. The link for this ruling is https://www.ato.gov.au/law/view/document?DocID=GST/GSTR20171/NAT/ATO/00001

Where the overseas attendees are non-residents that do not carry on any business activity, the supply of entry to the conference will be connected with Australia under paragraph 9-25(5)(a) of the GST Act. The supply will be subject to GST where you are required to be registered for GST or choose to register for GST since the supply of entry to the conference in Australia is not GST-free or input taxed.

Paragraph 9-5(d) of the GST Act – GST registration

You are required to be registered for GST and must register for GST in Australia if both of the following apply:

● you are carrying on an enterprise; and

● your GST turnover for sales that are connected with Australia and made in the course of your enterprise, meets or exceed the registration turnover threshold of $A75,000 ($a150,000 if you are non-profit body).

If you are not required to be registered for GST you can choose to register for GST.

You reach the GST registration turnover threshold if your:

● 'current GST turnover' (turnover for the current month and the previous 11 months) totals $A75,000 or more ($A150,000 or more for non-profit organisations), or

● 'projected GST turnover' (total turnover for the current month and the next 11 months) is likely to be $A75,000 or more ($A150,000 or more for non-profit organisations).

Your GST turnover is your gross sales revenue excluding sales not connected with Australia and GST you included in sales to your customers.

If your annual GST turnover for supplies that are connected with Australia will be $A75,000 or more you will be required to be registered for the Australian GST. You will elect to register for the Standard GST registration in this instance since you will incur expenses that have GST included in the price.

If you are not required to be registered for GST because your annual turnover for supply connected with Australia is below $A75,000, you can choose to register for the Standard GST registration.

When you register for the Standard GST registration you will be liable to remit the GST collected for the taxable supplies you make and claim back the GST paid on acquisitions that are related to your business activity. You can choose the date for your GST registration at the time you register for GST but the registration cannot be backdated for more than 4 years.

Information on how to register for the standard GST registration and what evidence to provide is available in the fact sheet https://www.ato.gov.au/business/international-tax-for-business/in-detail/doing-business-in-australia/australian-gst-registration-for-non-residents/

The link to apply for an ABN and GST is at https://abr.gov.au/For-Business,-Super-funds---Charities/Applying-for-an-ABN/ABN-for-businesses-outside-Australia/

Summary

You will make two distinct supplies when you sell tickets for the entry to the Sydney conference and the GST status of each supply is:

1. Supply of food (refreshments, snacks and lunches).

The supply of food to all attendees will be a taxable supply under section 9-5 of the GST Act where you are required to be registered for GST or choose to register for GST.

Where you are not required to be registered for GST and do not choose to register for GST, the supply of food will be outside the scope of GST.

2. Supply of entry to the conference.

Australian attendees

Where the Australian attendees are GST registered entities carrying on their businesses in Australia and the acquisition is for business purposes, the supply of entry to the conference to them is not connected with Australia. The supply is outside the scope of GST and will not be included when determining whether you are required to be registered for GST.

Where the Australian attendees (businesses and/or individuals) are not registered for GST, the supply of entry to the conference to them is connected with Australia under paragraphs 9-25(5)(a) and/or 9-25(5)(d) of the GST Act. The supply of entry to the conference will be subject to GST where you are required to be registered for GST or choose to register for GST.

Overseas attendees

Where the overseas attendees are non-residents that carry on a business outside Australia and the acquisition is for the purposes of the overseas business, the supply of entry to the conference to the non-residents is not connected with Australia under item 2. The supply is outside the scope of GST and will not be included when determining whether you are required to be registered for GST.

Where the overseas attendees are non-residents that do not carry on any business activity, the supply of entry to the conference will be connected with Australia under paragraph 9-25(5)(a) of the GST Act. The supply will be subject to GST where you are required to be registered for GST or choose to register for GST.

Where your sale of the tickets for the conference supply is a mixed supply of taxable and non-taxable supplies, you will need to apportion the fees collected for the sale between the taxable and non-taxable supplies. Goods and Services Tax Ruling GSTR 2001/8 which is available at ato.gov.au will be of assistance to you. The link for this ruling is http://law.ato.gov.au/atolaw/print.htm?DocID=GST%2FGSTR20018%2FNAT%2FATO%2F00001&PiT=99991231235958&Life=20140320000001-99991231235959

Question 2 – supply of sponsorships

Characterisation of supply

Taking into consideration all the facts given we consider that there are three distinct supplies that you will make when you supply each of the sponsorship packages to the Australian residents and non-residents of Australia:

1. supply of food

2. a supply of entry to the conference; and.

3. A supply of entry to the conference.

The next step is to determine the GST status of the two supplies.

1. Supply of food’

The supply of food to the sponsors at premises in Australia is connected with Australia.

The supply of food will be subject to GST if you are required to be registered for GST or if you choose to register for GST.

Where you are not required to be registered for GST and do not choose to register for GST the supply of food is outside the scope of GST.

2. Supply of entry to the conference

The supply of entry to the conference is discussed in question 1. For detailed information on the GST status refer to question 1.

Australian sponsors

You advised that the Australian sponsors will be GST-registered businesses.

Where the supply of entry to the conference is made to GST registered businesses, the supply of the entry is not connected with Australia under item 1 in the table in section 9-26 of the GST Act. The supply will be outside the scope of GST and will be not included when determining whether you are required to be registered for GST.

You have to ensure that you hold sufficient information before treating your supply to the GST registered Australian businesses as not connected with Australia under item 1. For example you can ask the Australian business to provide in writing its Australian business number (ABN) and whether it is registered for GST.

Non-resident sponsors

Where the non-resident sponsors are businesses that carry on their business activity outside Australia, the supply of entry to the conference to them is not connected with Australia under item 2 in the table in section 9-26 of the GST Act. The supply will be outside the scope of GST and will be not included when determining whether you are required to be registered for GST.

You have to ensure you have sufficient information that the requirements in item 2 are satisfied before treating your supply to these overseas attendees as not connected with Australia. You can refer to Goods and Services Tax Ruling GSTR 2017/1 which provides guidance on what evidence a supplier can hold when making supply to a GST registered Australian business. The link for this ruling is https://www.ato.gov.au/law/view/document?DocID=GST/GSTR20171/NAT/ATO/00001

3. Supply of advertising

From the facts given you satisfy paragraphs 9-5(a) and (b) of the GST Act when you make the supply of advertising as you will make the supply for consideration and you will make the supply in the course of a business that carry on.

The next step is to consider the other requirements in section 9-5 of the GST Act.

Paragraph 9-5(c) of the GST Act –supply is connected with Australia

We consider for GST purposes a supply of advertising is a supply of services. Relevant to your supply of advertising is paragraph 9-25(5)(a) of the GST Act and section 9-26 of the GST Act

The supply of advertising is connected with Australia under paragraph 9-25(5)(a) of the GST Act. However, it is relevant to consider section 9-26 of the GST Act since under this section some supplies that are done in Australia by non-residents are not connected with Australia where the requirements in section 9-26 of the GST Act are satisfied. In this instance, the supply made by the non-resident supplier is outside the scope of GST.

Section 9-26 of the GST Act

Under item 1 in the table in subsection 9-26(1) of the GST Act (item 1) a supply of anything other than goods or real property is not connected with Australia if:

● the supplier is a non-resident who does not make the supply through an enterprise that the supplier carries on in Australia; and

● the supply of the thing is done in Australia; and

● the recipient is an Australian based business recipient of the supply.

Subsection 9-26(2) of the GST Act defines ‘Australian-based business recipient’ as follows:

(2) An entity is an Australian-based business recipient of a supply made to the entity if:

a) the entity is registered; and

b) an *enterprise of the entity is *carried on in the indirect tax zone; and

c) the entity’s acquisition of the thing supplied is not solely of a private or domestic nature.

(* denotes a defined term in section 195-1 of the GST Act)

Under item 2 in the table in subsection 9-26(1) of the GST Act (item 2), a supply of anything other than goods or real property between non-residents is not connected with Australia if:

● the supplier is a non-resident who does not make the supply through an enterprise that it carries on in Australia; and

● the supply of the thing is done in Australia; and

● the recipient is a non-resident that acquires the thing supplied solely for the purpose of the enterprise that it carries on outside Australia.

From the information received the sponsors are Australian residents and non-residents of Australia.

Australian sponsors

You advised that the Australian sponsors are GST registered businesses.

Where the Australian sponsors are GST registered entities carrying on their businesses in Australia the requirements in item 1 and subsection 9-26(2) of the GST Act will be satisfied. In this instance, the supply of advertising to these GST registered Australian businesses is not connected with Australia. The supply is outside the scope of GST and will be not included when determining whether you are required to be registered for GST.

You have to ensure that you hold sufficient information before treating your supply to the GST registered Australian sponsors as not connected with Australia under item 1. For example you can ask the Australian business to provide in writing its Australian business number (ABN) and whether it is registered for GST.

Overseas sponsors

Where the overseas sponsors are non-residents that carry on a business outside Australia and the acquisition of the advertising is for the purposes of the overseas business, the supply of advertising to the non-residents is not connected with Australia under item 2. The supply is outside the scope of GST and will be not included when determining whether you are required to be registered for GST.

You have to ensure you have sufficient information that the requirements in item 2 are satisfied before treating your supply of advertising to these overseas sponsors as not connected with Australia. You can refer to Goods and Services Tax Ruling GSTR 2017/1 which provides guidance on what evidence a supplier can hold when making supply to a GST registered Australian business. The link for this ruling is https://www.ato.gov.au/law/view/document?DocID=GST/GSTR20171/NAT/ATO/00001

Summary

You will make three distinct supplies when you supply the four sponsorship packages to the sponsors and the GST status of each supply is:

1. a supply of food;

2. a supply of entry to the conference; and.

3. a supply of entry to the conference.

Supply of food’

The supply of food to the sponsors at premises in Australia is connected with Australia.

The supply of food will be subject to GST if you are required to be registered for GST or choose to register for GST.

Where you are not required to be registered for GST and do not choose to register for GST your supply of food will be outside the scope of GST.

Supply of entry to the conference

Australian sponsors

You advised that the Australian sponsors will be GST-registered businesses

Where the supply of entry to the conference is made to GST registered businesses, the supply of the entry is not connected with Australia under item 1 in the table in section 9-26 of the GST Act. The supply will be outside the scope of GST and will be not included when determining whether you are required to be registered for GST.

Non-resident sponsors

Where the non-resident sponsors are businesses that carry on their business activity outside Australia, the supply of entry to the conference to them is not connected with Australia under item 2 in the table in section 9-26 of the GST Act. The supply will be outside the scope of GST and will be not included when determining whether you are required to be registered for GST.

Supply of advertising

Australian sponsors

You advised that the Australian sponsors are GST registered businesses.

Where the Australian sponsors are GST registered entities carrying on their businesses in Australia the requirements in item 1 and subsection 9-26(2) of the GST Act will be satisfied. In this instance, the supply of advertising to these GST registered Australian businesses is not connected with Australia. The supply is outside the scope of GST and will be not included when determining whether you are required to be registered for GST.

Overseas sponsors

Where the overseas sponsors are non-residents that carry on a business outside Australia and the acquisition of the advertising is for the purposes of the overseas business, the supply of advertising to the non-residents is not connected with Australia under item 2. The supply is outside the scope of GST and will be not included when determining whether you are required to be registered for GST.

Apportionment

Where your supply is a mixed supply of taxable and non-taxable supplies, you will need to apportion the fees collected for the sponsorship between the taxable and non-taxable supplies. Goods and Services Tax Ruling GSTR 2001/8 which is available at ato.gov.au will be of assistance to you.

Question 3

The online payment method is a payment processing method you use to collect payments for the sale of your tickets and will not have any implications to the GST status of your supply of tickets to the attendees.

Where you are registered for the Australian GST and make a taxable sale of more than $A82.50 (including GST), your GST-registered customers need a tax invoice from you to be able to claim a credit for the GST in the purchase price.

If a customer asks you for a tax invoice, you must provide one within 28 days of their request.

For a tax invoice to be valid it needs to include the following:

● words 'tax invoice'

● seller's name and ABN

● issue date of the invoice

● description of items sold – including the quantity and price

● GST amount included in the price

● extent to which each sale includes GST, and

● purchaser's name and ABN (for sales above $1,000).

A tax invoice that includes taxable and non-taxable items – that is, items that are either GST-free or input-taxed – must clearly show which items are taxable. In addition to the standard information the tax invoice must also show:

● each taxable sale

● the amount of GST to be paid

● the total amount to be paid.

e-Invoicing

e-Invoicing is the exchange of invoice related documents between a seller and a customer in an electronic format.

A tax invoice does not need to be issued in paper form. You can issue a tax invoice to a customer by means of e-Invoice. This is not limited to, for example, issuing a tax invoice in a PDF format. What is important is that the electronic record transmitted to the customer contains all of the information required for a tax invoice and is readily accessible and easily convertible to English.

Rounding of GST

Where an amount of GST includes a fraction of a cent, special rounding rules apply.

Where there is only one taxable sale on a tax invoice, the amount of GST should be rounded to the nearest cent (rounding 0.5 cents upwards).

Where there is more than one taxable sale on a tax invoice, there are two rules known as the 'total invoice rule' and the 'taxable supply rule':

● Total invoice rule – under this rule, the unrounded amounts of GST for each taxable sale should be totaled and then rounded to the nearest cent (rounding 0.5 cents upwards).

Alternatively, if all the taxable sales on a tax invoice include an amount of GST that is exactly 1/11 of the price, you may choose to add up the GST-exclusive value of each taxable sale, calculate GST on that amount and then round to the nearest cent (rounding 0.5 cents upwards).

● Taxable supply rule – under this rule, you need to work out the amount of GST for each individual taxable sale. Where the unrounded amount of GST has more decimal places than your accounting system can record, the amount should be rounded up or down as appropriate. You then need to add the individual amounts and round this total to the nearest cent (rounding 0.5 cents upwards).

You and your customer do not need to use the same rounding rules.

For more information on tax invoices refer to:

● tax invoices and record keeping for GST credits at https://www.ato.gov.au/newsroom/smallbusiness/gst-and-excise/tax-invoices-and-record-keeping-for-gst-credits/

● issuing tax invoices at https://www.ato.gov.au/business/gst/issuing-tax-invoices/?utm_campaign=refund_integrity&utm_source=sbn&utm_medium=email&utm_term=march2018_issuing_tax_invoices

● when you need a tax invoice at https://www.ato.gov.au/business/gst/claiming-gst-credits/when-you-can-claim-a-gst-credit/?utm_campaign=refund_integrity&utm_source=sbn&utm_medium=email&utm_term=march2018_when_you_need_a_tax_invoice&anchor=WhenYouNeedATaxInvoice#WhenYouNeedATaxInvoice

Question 4

There are two types of GST registration available to non-resident that makes supplies that are connected with Australia:

1. Simplified GST registration

The Simplified GST registration is for non-resident that makes sales of imported services or imported digital products to Australian consumers (Australian resident not registered for GST or registered for GST and acquiring the supply for private use) or intend to make sale of low value goods imported by consumers (purchaser not registered for GST or registered for GST and the purchase is for private use) into Australia.

In the simplified GST system for non-residents:

● You do not have to prove your identity

● You use an ATO reference number (ARN) instead of an ABN

● You cannot issue tax invoices or adjustment notes.

● You cannot claim GST credits

● You must lodge your GST returns and pay GST quarterly.

● You can pay electronically via SWIFT bank transfer or credit card

2. Standard GST registration with an ABN

The Standard GST registration with an ABN is Australia’s full domestic GST system,

If you are a standard GST registrant you:

● can get an Australian business number (ABN)

● can claim input tax credits for acquisitions you made for your business

● include GST in the price of your taxable supply

● your GST reporting and payment period can be one of the following:

● monthly

● quarterly

● annually if you voluntarily registered for GST – that is you are registered for GST and your GST turnover is under $A75,000

● use activity statements to report GST. We issue your business activity statement about two weeks before the end of your reporting period. The date for lodging and paying is shown on your activity statement.

When you complete your activity statement you will report your taxable sales and your entitlement for your GST refund (GST credits). This GST credits will be offset against your GST liability. If your GST credits are more than your GST liability you will receive a refund. If your GST credits are less than your GST liability, you will need to pay the balance to us when you lodge your activity statement.

In your case you are to elect for the Standard GST registration with an ABN if you want to claim back the GST paid on acquisition related to your business activity. Once registered you will be able to claim back GST credits paid on acquisitions and will have to charge GST for supplies that are connected with Australia.

The fact sheet ‘GST’ (available at https://www.ato.gov.au/Business/GST/ ) will be useful to you as it explains how GST works which includes when to claim GST credits, accounting for GST and lodging the activity statements to report GST and so on.