Private ruling: GST and supply of services to a non-resident entity
Published: October 2014

Ruling: Q1: Is goods and services tax (GST) payable on your supply of services to a non-resident entity? | A1: No. 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. Based on the information provided, your supply of services to the non-resident entity is GST-free as it is covered by item 2. Therefore, GST is not payable on your supply of these services to the non-resident entity.

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, or an agent, in Australia through which it carries on its business. You deal directly with the non-resident entity overseas in relation to your supply of services.

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.