Private ruling: GST - export of legal services
Date of advice: 5 February 2026
Published: 30 March 2026
Ruling period: Tax periods ending between November 20XX and June 20XX

Ruling: Q1: Did the entity make a GST-free supply under section 38-190 of the A New Tax System (Goods and Services Tax) Act 1999 when it supplied legal services to the individual? | A1: Yes, the supply of services is GST-free.

Relevant facts and circumstances: The entity is a legal firm and is registered for GST. The individual engaged the entity to assist in relation an application for review in the Administrative Appeals Tribunal (AAT) regarding a dispute. The legal services provided included preparing and reviewing documents; attending meetings; considering the law; and attending to e-mails. At the time of the engagement and when the legal services were provided, the individual was not in Australia, they were living outside of Australia. The substantive matter in dispute was whether the individual was an Australian resident. The only services provided by the entity to the individual related to their appeal to the AAT, which concerned their assertion that they were not living in Australia (and was not an Australian resident) for the purposes of the income tax laws. The individual did not meet with the entity's representatives in person.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 38-190.

Reasons for decision: Summary: The table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) provides the circumstances in which a supply of services may be GST-free. Table item 3 in subsection 38-190(1) of the GST Act states that a supply other than a supply of work physically performed on goods situated in the indirect tax zone (Australia) when the thing supplied is done, or a supply directly connected with real property situated in the indirect tax zone, is GST-free if it is a supply: (a) that is made to a recipient who is not in the indirect tax zone when the thing supplied is done; and (b) the effective use or enjoyment of which takes place outside of the indirect tax zone. The individual engaged the entity to assist in relation to an application for review in the Administrative Appeals Tribunal (AAT) regarding a dispute. The legal services provided by the entity included preparing and reviewing documents; attending meetings; considering the law; and attending to e-mails. The services were not physically performed on goods, nor were they directly related to real property located in Australia. The individual did not attend the meetings with the entity in person and has not met in person with any representatives from the entity. At the time of the engagement and when the legal services were provided, the individual was living outside of Australia. As such, paragraph (a) of table item 3 in subsection 38-190(1) of the GST Act has been satisfied. That is, the legal services were provided to the individual, when they were not in Australia. The view of when a recipient is not in Australia at the time of a supply is discussed in detail in the goods and services tax ruling, GSTR 2004/7 Goods and services tax: in the application of items 2 and 3 and paragraph (b) of item 4 in the table in subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999: • when is a 'non-resident' or other 'recipient' of a supply 'not in Australia when the thing supplied is done'? • when is 'an entity that is not an Australian resident' 'outside Australia when the thing supplied is done'? As GST is not generally intended to apply to consumption outside of Australia, the purpose of section 38-190 of the GST Act is to treat certain supplies that are for consumption outside of Australia as GST-free. This is explained in paragraph 181 of GSTR 2004/7: 181. The requirement that a supply is made to a non-resident (item 2), or recipient (item 3), who is 'not in Australia' 'when the thing supplied is done' is in effect a proxy test for determining where the supply to that entity is consumed. The presumption is that if the non-resident or other recipient of the supply is 'not in Australia' when the thing supplied is done, the supply of that thing is for consumption outside Australia and is GST-free, provided the other requirements of the item are met. The location of the recipient when the supplies are made is critical in considering whether a supply satisfies table item 3 in subsection 38-190(1) of the GST Act. This is because the recipient must be outside of Australia when the supply is made. This is clarified in paragraphs 52 and 222 (amongst others) of GSTR 2004/7: 52. As mentioned at paragraph 31, we determine whether the not in Australia requirement is satisfied by determining whether the recipient is in Australia in relation to the supply. If the recipient is in Australia in relation to the supply the recipient does not satisfy the not in Australia requirement. ... 222. Like non-resident individuals, an Australian resident individual is in Australia if the individual is physically located in Australia when the thing supplied is done. As the individual was not physically in Australia during the period when the entity was working on their matter, they were not in Australia in relation to the supply and, as such, paragraph (a) of table item 3 of subsection 38-190(1) of the GST Act is satisfied. The other requirement for a supply to be GST-free under table item 3 of subsection 38-190(1) of the GST Act is that the 'effective use or enjoyment' of the supply takes place outside of Australia. Example 16 in GSTR 2025/2 Goods and services tax: supplies of things (other than goods or real property) where effective use or enjoyment of the supply takes place outside Australia explains that, where the provision of a service is fundamental to the recipient's presences outside of Australia (and not merely coincidental), the supply is provided to that recipient outside Australia and the effective use or enjoyment of the supply takes place outside Australia. When the need for a supply arises because of the recipient's presence outside of Australia, it is a strong indicator of the connection between the supply and the location of the recipient. A supply is provided to an individual at a particular location that is outside Australia, if the facts and circumstances of the supply show that the individual's presence at that location is integral to, as distinct from being merely coincidental with, the provision of the supply. Paragraph 106 of GSTR 2025/1 Goods and services tax: supplies of things (other than goods or real property) made to non-residents but provided to another entity in Australia states: 106. Determining whether an individual's presence at a particular location is integral to the provision of the supply requires an examination of the facts and circumstances of the supply. However, some indicators that an individual's presence at a particular location is integral to the provision of the supply and is not merely coincidental include: • the need for the supply arises from the individual's presence at that location... The subject matter of the legal services was a dispute where the individual contended that they were not a resident of Australia as they did not reside in Australia, did not have their domicile in Australia (or that, if they did, then their usual place of abode was outside of Australia). The essence of the legal services provided by the entity was to provide advice to the individual in regard to their assertion that they were not an Australian resident. That is, the reason for seeking the legal advice was because of the individual's extended presence outside Australia and this presence raised arguments relevant to the individual's assertion that they were not an Australian resident. The legal services were integral to the individual not being in Australia and therefore effective use or enjoyment of the supply was outside Australia. Consequently, the supply of the legal services to the individual is GST-free under table item 3 of subsection 38-190(1) of the GST Act because: • the services were supplied to the individual when he was not in Australia; • the effective use or enjoyment of the services took place outside of Australia; and • the services were not of work physically done on goods or directly connected to real property located in Australia.