Private ruling: GST and the services provided to non-residents
Date of advice: 1 July 2021
Published: September 2021

Ruling: Issues | The Commissioner was asked to rule on whether: | 1. the importation of certain parts by an Australian resident agent into Australia for a non-resident principal is a non-taxable importation pursuant to subsection 42-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) such that no GST is payable on the importation of the parts by the resident agent, | 2. in the event the Commissioner determines that the importation of parts is not a non-taxable importation, the Australian entity that acts as resident agent for a non-resident entity (principal) is entitled to claim an input tax credit under section 57-10 of the GST Act for the GST incurred on the taxable importation of parts on the basis that the requirements for creditable importation under section 15-5 of the GST Act should be satisfied by the non-resident, | 3. the resident agent's supply of certain services to another non-resident entity (that is not the principal) satisfies the GST-free requirements under item 2 in the table in subsection 38-190(1) of the GST Act (item 2). | Ruling | The Commissioner ruled as follows: | 1. No, the importation of the parts will not be treated as a non-taxable importation pursuant to subsection 42-5(1) of the GST Act. | 2. No, the resident agent is not entitled to an input tax credit for the GST paid on the taxable importation of the parts under section 57-10 of the GST Act when it is acting as a resident agent for the non-resident principal who makes the taxable importation of the parts into Australia. This is because the non-resident principal's importation is not a creditable importation as the non-resident principal does not make the importation in the course or further of an enterprise. | 3. The supply of some services are GST-free under item 2 as these services are made and provided to another non-resident and subsection 38-190(3) of the GST Act does not override that GST-free status. | The supply of some of the other services of 'providing' technical assistance and training within Australia to an Australian entity's personnel is GST-free under item 2 but subsection 38-190(3) of the GST Act may negate GST-free status in limited circumstances.