Private ruling: Supplies made to a non-resident
Date of advice: 3 February 2021
Published: March 2021

Ruling: Q1: 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