Private ruling: GST and supply of recruitment services to non-residents based overseas
Date of advice: 8 November 2017
Published: March 2018

Ruling: Q1: Is Goods and Service Tax (GST) payable on your supply of recruitment services to overseas companies, associations and incorporated business entities that do not operate in Australia? | A1: No. Your supply of these services under such circumstances is GST-free 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) (item 2), as: ● recruitment services are not supplies of goods or real property; and ● the customers in question are non-residents who are ‘not in Australia’ for the purposes of item 2; and ● the supplies of the recruitment services are not supplies of work physically performed on goods situated in Australia when the work is done nor supplies that are directly connected with real property situated in Australia; and ● you do not provide these services, under such circumstances, to third parties in Australia and no other exclusions from GST-free treatment under item 2 apply.

Relevant facts and circumstances: You are registered for GST. You supply recruitment services to: ● Australian based entities, including those registered for GST; and ● overseas based entities, including those that do not operate in Australia and are not registered for GST in Australia. Your overseas clients contract you for the search and appointment of personnel who will work solely in the overseas country. You conduct interviews with job candidates in Australia and the overseas country. You provide these recruitment services to overseas entities. You charge a placement fee to your clients for your recruitment services.

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 38-190