Private ruling: GST and export of services
Date of advice: 9 April 2026
Published: 29 June 2026

Ruling: Q1: Is the supply of your services to an entity based overseas GST-free? | A1: Yes, the supply of your services to an entity based overseas is GST-free.

Relevant facts and circumstances: • You entered into a contract (contract) with an entity based overseas (Entity A) to supply services to Entity A. • You are a sole trader who is registered for GST. • Your services are supplied solely to, and for the direct commercial benefit of, Entity A. While Australian customers (of Entity A) or other market participants may derive incidental or consequential benefits from your services no Australian entity is the intended recipient of, or beneficiary under, the contractual performance of your services. • You are neither an agent or employee of Entity A. • Contracts that Entity A and their clients enter into are directly executed between them. • You do not supply any goods as part of your services. • Entity A does not have any presence in Australia at the time you supply your services to it.

Relevant legislative provisions: Section 9-5of the A New Tax System (Goods and Services Tax) Act 1999 | Subsection 38-190(1) of the A New Tax System (Goods and Services Tax) Act 1999

Reasons for decision: Summary: A supply is GST-free if it falls within any of the provisions in Division 38 of the A New Tax System (Goods and Services) Act 1999 (GST Act). The relevant provision to consider in this Ruling is item 2 in the table in subsection 38-190 (1) of the GST Act (Item 2). A supply of a thing (other than goods or real property) made to a non-resident is GST-free under Item 2 if the non-resident is not in Australia when the thing supplied is done and: (a) the supply is neither a supply of work physically performed on goods situated in Australia when the work is done nor a supply directly connected with real property situated in Australia, or (b) the non-resident acquires the thing in carrying on their enterprise but is not registered or required to be registered. However, if the supply covered by Item 2 is under an agreement entered into (whether directly or indirectly) with a non-resident entity and that supply is provided to another entity in Australia, or the agreement requires that it be so provided, subsection 38-190(3) may negate the GST-free status of that supply (otherwise afforded under Item 2). Considering the terms and conditions under which you supply your services to Entity A it is our view that it falls under paragraph (a) of Item 2. Further given there is no arrangement under which you are required to supply your services to another entity in Australia, the services are not negated under subsection 38-190(3) of the GST Act. Other GST-free negating provisions of section 38-190 do not apply either. Accordingly, the supply of your services to Entity A is GST-free. GST is not payable on GST-free supplies.