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Edited version of private advice
Authorisation Number: 1051685994459
Date of advice: 26 May 2020
Ruling
Subject: Assessability of the overseas internet business income
Question
Is any part of your income from your overseas internet business assessable in Australia?
Answer
No
Having considered your circumstances, it is accepted that the income from your overseas internet business is not assessable in Australia.
This ruling applies for the following periods:
Year ended 30 June 2021
The scheme commences on:
1 July 2020
Relevant facts and circumstances
You are a non-resident of Australia.
You live in a country other than Australia.
The business is operated as a sole trader.
The business conducts transactions over the internet globally.
The business has no employees.
The business enters into arrangements with certain producers globally then establishes transaction accounts to market and to sell their products.
The business completes the sales transactions and receives a percentage commission on each sale.
You incur costs for maintaining your business and derive a net income for each reporting period.
The business operates under a number of different names and seller identifications.
The stock is owned by the supplier in another country not the business. The business acts as a sales agent for the supplier selling products on third party websites.
Customers place orders on third party websites the business takes the orders and email them daily to the supplier who distributes direct to the customer. The business processes the invoices.
Customer payments and refunds are done on third-party websites.
The website host company is located in the in a third country.
Operating bank accounts are foreign.
The business is sole trader operated and decisions are made overseas.
Some of the customers are from Australia.
The business has and Australian Business Number (ABN)
The business is registered for Goods and Services Tax (GST) in Australia.
The business lodges activity statements in Australia to comply with Australian GST requirements
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 6-5(3)
Tax Agreements Act 1953