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Edited version of private advice
Authorisation Number: 1051801569570
Date of advice: 3 February 2021
Ruling
Subject: Supplies made to a non-resident
Question
Is GST payable on the supply of your services to your non-resident clients under section 7-1 of the A New Tax System (Goods and Services Tax) 1999 (GST Act)?
Decision
No, GST is not payable on the supply of your services to your non-resident clients under section 7-1 of the GST Act.
GST is payable on taxable supplies that come under section 9-5 of the GST Act. Based on the information provided it is the Commissioners' view that the supply of your services to your non-resident clients who are not in Australia when you make the supply is a GST-free supply that comes under either items 2 (a) and/or 2(b) or 3 of the table in paragraph 38-190(1) of the GST Act. Therefore, your supplies to your NZ clients are not taxable supplies.
Relevant facts and circumstances
You are an Australian company.
You are registered for GST.
You conduct an enterprise.
Your clients pay you a monthly fee for the services you provide.
Your clients are based both in Australia and overseas.
You have been treating your supplies to your Australian clients as a taxable supply and thus paying GST.
Your non-resident clients carry on their enterprises overseas and are not in Australia when you supply your services.
Relevant legislative provisions
Section 9-5 of the A New Tax System (Goods and Services Tax) 1999
Section 7-1 of the A New Tax System (Goods and Services Tax) 1999
Section 38-190 of the A New Tax System (Goods and Services Tax) 1999