Private ruling: GST - non-resident entity
Date of advice: 20 July 2023
Published: 11 September 2023
Ruling period: 2 May 2023 to 1 May 2027
Date scheme commenced: 2 May 2023

Ruling: Q1: Is GST payable on the supply of your service to the non-resident entity? | A1: No. GST will not be payable as it will be a GST-free supply under item 2 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) on the basis that: • you will make an intangible supply to a non-resident who is not in Australia; and • the supply will not be a supply of work physically performed on goods situated in Australia when the work is done; and • the supply will not be directly connected with real property situated in Australia; and • no exclusions from the GST-free status of the supply (as set out in subsection 38-190(2), 38-190(2A) or 38-190(3)) will apply.

Relevant facts and circumstances: You are registered for GST. You are a resident of Australia. Your business is searching for investors in Australia and introducing them to an overseas based, non-resident (capital raising). The non-resident is an investment manager. The non-resident does not have a presence in Australia, such as an office or staff. Your agreement with the non-resident involves you approaching Australian investors to raise money/assets for the non-resident. Once the assets have been raised, the non-resident would then invest the money for the Australian investor. You are paid a retainer by the non-resident and are also eligible for a success fee if the assets are raised. The retainer will be more than $75,000 per annum. The service you perform for the non-resident is performed in Australia.

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 9-25 | A New Tax System (Goods and Services Tax) Act 1999 section 38-190