Private ruling: GST and supply of services to non-residents
Date of advice: 24 July 2023
Published: 11 September 2023

Ruling: Q2: Is the entity making taxable supplies under section 9-5 of the GST Act of services for which they receive commission payments under the contracts entered into with the non-resident manufacturers? Decision 1 No, as the entity is not acting as agent for the non-resident manufacturers in relation to the sale of the goods, any GST liability on the sale of those goods remains with the non-resident manufacturer. The entity is not liable under section 57-5 of the GST Act to pay the GST on sales of goods by the non-resident manufacturers. Decision 2 No, the entity is not making taxable supplies under section 9-5 of the GST Act of services for which they receive commission payments under the contracts entered into with the non-resident manufacturers. The supply made by the entity is a GST-free supply under paragraph (a) of item 2 in the table in subsection 38-190(1) of the GST Act. The GST-free status of the supplies is not negated by any other provision in section 38-190 either. Therefore, the entity is not liable for GST on the supply of services made to the non-resident manufacturers who are not in Australia when the supplies are made.

Relevant facts and circumstances: The entity is an Australian company that supplies services to non-resident manufacturers who are not in the indirect tax zone when the services are performed. The non-resident manufacturers supply goods to Australian customers. The entity promotes the goods to the Australian market and undertakes other services for the non-resident manufacturers. The entity is not an agent of the non-resident manufacturers and does not make any supplies in Australia on-behalf of the manufacturers. The entity is registered for GST.

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 subsection 38-190(1)


Question 1: Is the entity liable under section 57-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) to pay the GST on sales of goods by the non-resident manufacturers?