Private ruling: GST and supply of services to a non-resident
Published: January 2015

Ruling: Q1: Is your supply of services to a non-resident entity GST-free where the non-resident entity engages another Australian entity to coordinate the timing of your services? | A1: Yes. Under item 2 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 (item 2), a supply that is made to a non-resident who is not in Australia when the thing supplied is done is GST-free if: (a) the supply is neither a supply of work physically performed on goods situated in Australia when the work is done nor a supply directly connected with real property situated in Australia; or (b) the non-resident acquires the thing in carrying on the non-resident's enterprise but is not registered or required to be registered. For the purpose of item 2, a non-resident company is in Australia if it carries on business (or in the case of a company that does not carry on business, carries on its activities) in Australia: • through a fixed and definite place of its own for a sufficiently substantial period of time; or • through an agent at a fixed and definite place for a sufficiently substantial period of time. You advised that the non-resident entity does not have a presence or a permanent establishment in Australia through which it carries on its business or activities. We consider that the other Australian entity, in its limited role of coordinating the timing of your services, is merely providing services to the non-resident rather than carrying on the non-resident's business or activities. Therefore, the non-resident entity is not in Australia when you supply your services. Based on the information provided, your supply of services to the non-resident entity is GST-free as it covered by item 2.

Relevant facts and circumstances: You are registered for GST. You provide services to a non-resident entity. All your services are done in Australia. The non-resident entity does not have a presence in Australia. It does not have a permanent establishment in Australia through which it carries on its business. The non-resident entity acquires the services of another Australian entity whose only role is to organise the timing of the services to be provided by you; that is, the other Australian entity will advise you the time and date when your services are required. You deal directly with the non-resident entity overseas in relation to your supply of services; and issue them an invoice directly.

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 38-190 and | A New Tax System (Goods and Services Tax) Act 1999 section 38-355.