Private ruling: GST and specific services.
Published: February 2014

Ruling: Q1: Are the supplies of specific services by a non-resident company (X) to its clients (both in Australia and outside Australia), pursuant to the agreement between X and its clients, connected with Australia where the supplies are made through a related Australian company (Y) as the specific service participant on the relevant futures & options (F&O) exchange? | A1: Yes, the supplies of specific services by X to its clients (both in Australia and outside Australia) in relation to trades on the F&O exchange are connected with Australia as the supplies are done in Australia (or made through Y as the specific participant on the relevant F&O exchange). | Q2: Are the supplies of specific services by X to its clients, pursuant to the agreement between X and its clients, connected with Australia where the supplies are made through a related offshore entity as the specific participant on the relevant offshore F&O exchange? | A2: The supplies of execution services by X to its clients in relation to trades executed on the relevant offshore F&O exchange are not connected with Australia if the supplies are done outside Australia and made through an offshore entity. However, the supplies of specific services for trades executed on the relevant offshore F&O exchange are connected with Australia if these supplies are made through Y. That is, Y acts as the F&O desk (and/or the client services team) which agrees that the specific services will be carried out for each trade order by accepting and approving (on behalf of X) the transaction(s) with the clients. The supplies of clearing services by X to its clients in relation to trades cleared on the relevant offshore F&O exchange are not connected with Australia and are not taxable supplies under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). | Q3: If the answer to question 2 is 'yes', are the supplies of those services by X to the clients a GST-free supply pursuant to item 4(a) in the table in subsection 38-190(1) of the GST Act? | A3: Yes, if the supplies of the execution services for trades executed on the relevant offshore F&O exchange are connected with Australia in question 2, these supplies are GST-free.




Subject: GST and specific services.: In order to protect the privacy and commercial in-confidence components of this private binding ruling the following summary is provided.