GST issues registers
Insurance industry partnership7 Offshore insurance or reinsurance
Issue
If the Singapore branch of an Australian company writes a policy in Singapore for a Singapore resident which includes incidental cover of property in Australia, is that part of the cover subject to GST in Australia?
For source of ATO view, refer to paragraphs 34 to 36 of GSTR2019/1 Goods and services tax: supply of anything other than goods or real property connected with the indirect tax zone (Australia).
ATO view
The first thing to look at is whether the supply is a taxable supply under section 9-5.
Is the supply for consideration? Most likely yes.
Is the supply made in the course or furtherance of the entity's enterprise? Most likely yes.
Is the supplier registered for GST? Presuming that the branch is not a separate entity from the Australian company, most likely yes.
Is the supply connected with Australia? Presuming that the thing is not done in Australia, does the last action necessary to make the contract of insurance binding take place outside Australia? Most likely yes.
If all the above assumptions are correct in the particular factual situation, the supply would not be a taxable supply.
© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA
You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).