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Edited version of private advice
Authorisation Number: 1051861074963
Date of advice: 21 July 2021
Ruling
Subject: GST and supplies made by a non-resident to another non-resident that are connected with Australia
Questions
The Commissioner was asked to rule on the following matters
1. Are the supplies that a non-resident company makes as a prime contractor at a project in Australia pursuant to its contracts with another non-resident body disconnected from Australia pursuant to subsection 9-26(1) of the A New Tax System (Goods and Services Tax ) Act 1999 (GST Act)?
2. Are the supplies that the non-resident (in Question - 1) makes as a subcontractor at the same project as in Question - 1 (in Australia) disconnected from Australia pursuant to subsection 9-26(1) of the GST Act?
3. If in the event the Commissioner determines that supplies made by the non-resident both as a prime contractor and sub-contractor are connected with Australia, are these supplies GST-free under subsection 38-190(1) of the GST Act?
Answers
The Commissioner ruled as follows:
1. No, the supplies that a non-resident company makes as a prime contractor at a project in Australia pursuant to its contracts with another non-resident body are not disconnected from Australia pursuant to subsection 9-26(1) of the GST Act.
2. No, the supplies that the non-resident (in Question - 1) makes as a subcontractor at the same project as in Question - 1 (in Australia) are not disconnected from Australia pursuant to subsection 9-26(1) of the GST Act.
a. The supplies made by the non-resident as a prime contractor are not GST-free under subsection 38-190(1) of the GST Act.
b. The supplies made by the non-resident as a subcontractor may or may not be GST-free under subsection 38-190(1) of the GST Act.
Relevant legislative provisions
Section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999
Section 9-25 of the A New Tax System (Goods and Services Tax) Act 1999
Section 9-26 of the A New Tax System (Goods and Services Tax) Act 1999
Section 13-5 of the A New Tax System (Goods and Services Tax) Act 1999
Section 57 of the A New Tax System (Goods and Services Tax) Act 1999