Private ruling: GST and supply of services
Published: August 2014

Ruling: Q1: Are you liable to pay goods and services tax (GST) on the supply of services that you made to an individual? | A1: Yes, you are liable to pay GST on the supply of your services to the individual but only to the extent that the supply was made while they were in Australia. The supply of your services to the individual while he was in Australia is a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). There is no provision in the GST Act under which the supply would be GST-free or input taxed. The supply of your services made to the individual while they were outside Australia is GST-free under item 3 in the table in subsection 38-190(1) of the GST Act. Based on the information you provided, there was a provision of the supply of your services to the individual while they were outside Australia; and thus, the effective use and enjoyment of that supply took place outside Australia. Accordingly, the requirements of item 3 in the table in subsection 38-190(1) of the GST Act are satisfied. As the supply of your services to the individual consists of a taxable part and a GST-free part, you must apportion the consideration between these parts to work out the GST payable on the taxable part of the supply. You can use any reasonable method that is supportable in the particular circumstances to apportion the consideration. You should keep records that explain the method used.

Relevant facts and circumstances: You are registered for goods and services tax (GST). You provided services to an individual who was physically in Australia. They later moved overseas from where you continued to deal with them by phone and emails. At the time your services were completed, the individual was still residing outside Australia.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 and | A New Tax System (Goods and Services Tax) Act 1999 subsection 38-190(1).