Private ruling: GST and supply of translating services
Date of advice: 29 November 2016
Published: April 2017

Ruling: Q1: Are you required to be registered for the goods and services tax (GST) when you supply your translating services outside Australia? Advice No, you are not required to be registered for GST when you supply your translating services outside Australia because your supply of translating services is not connected with Australia and therefore not included when calculating the GST annual turnover for GST registration.


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 subsection 9-25(5) | A New Tax system (Goods and Services Tax) Act 1999 section 23-5

Reasons for decision: Summary: Note : Where the term 'Australia' is used in this document, it is referring to the 'indirect tax zone' as defined in subsection 195-1 of the GST Act. | Detailed Reasoning - Taxable supply: GST is payable on a taxable supply. Under section 9-5 of the GST Act, an entity makes a taxable supply if: a) the supply is made for consideration; and b) the supply is made in the course or furtherance of an enterprise that the entity carries on; and c) the supply is connected with Australia; and d) the entity is registered for GST. However, the supply is not a taxable supply to the extent that it is GST-free or input taxed. All of the above must be satisfied for your supplies to be taxable supplies. | Detailed Reasoning - Connected with Australia: The connection with Australia is one of the elements required to be satisfied before a supply is a taxable supply. Under subsection 9-25(5) of the GST Act, a supply of anything other than goods or real property is connected with Australia if: a) the thing is done in Australia; or b) the supplier makes the supply through an enterprise that the supplier carries on in Australia; or c) all of the following apply: neither paragraph (a) nor (b) applies in respect of the thing; the thing is a right or option to acquire another thing; the supply of the other thing would be connected with Australia. Only one of the paragraphs in subsection 9-25(5) of the GST Act needs to be satisfied for the supply to be connected with Australia. Goods and Services Tax Ruling GSTR 2000/31 provides guidance on when a supply of services is connected with Australia. Paragraph 9-25(5)(a) of the GST Act Under paragraph 9-25(5)(a) of the GST Act the connection with Australia requires that the 'thing' being supplied is 'done' in Australia. 'Thing' is defined in section 195-1 of the GST Act to mean anything that can be supplied or imported. Things other than goods or real property that can be supplied include services, advice, information, rights, obligations to do anything, or any combination of these things. The meaning of 'done' depends on the nature of the 'thing' being supplied. 'Done' can mean, for example, performed, executed, completed, finished and so on depending on what is supplied. You advised that your translating services are done in an office located outside Australia. In this instance your supply of the translating services is not connected with Australia as paragraph 9-25(5)(a) of the GST Act is not satisfied. Your supply is outside the scope of GST and therefore not subject to the GST law. Paragraph 9-25(b) of the GST Act If the supply of a thing is not connected with Australia because the thing is not done in Australia, the supply is connected with Australia if, under paragraph 9-25(5)(b) of the GST Act the supplier makes the supply through an enterprise that the supplier carries on in Australia. You advised you are not a permanent resident of Australia and your translating business is carried on in the country you currently reside. In this case you do not make the supply of translating services through a business that you carry on in Australia. In this instance, your supply is not connected with Australia as paragraph 9-25(5)(b) of the GST Act is not satisfied.. Your supply is outside the scope of GST and therefore not subject to the GST law. Paragraph 9-25(5)(c) of the GST Act Paragraph 9-25(5)(c) of the GST Act is not applicable as there are no supplies of rights or options to acquire other things where the supply of the other things would be connected with Australia when you make your supply of translating services. Summary Your supply of translating services is not connected with Australia. Your supply will be outside the scope of GST and therefore not subject to the GST law | Detailed Reasoning - GST registration: Under section 23-5 of the GST Act, you are required to be registered for GST if: a) the entity carries on an enterprise; and b) the entity's GST turnover (current and/or projected) meets the GST registration turnover threshold (currently $A75,000 and $A150,000 for non-profit organisation). The entity can choose to register for GST if its GST turnover is less than $A75,000. Goods and Services Tax Ruling GSTR 2001/7 (available at www.ato.gov.au) provides guidance on the meaning of GST turnover. When calculating your GST turnover, supplies that are not connected with Australia are not included. Since your supply of translating services is not connected with Australia and this is the only supply you make, this supply will not be included when calculating your GST turnover. You are therefore not required to be registered for GST. | Summary: You are not required to be registered for GST as your supply of translating services is not connected with Australia and therefore not included when calculating your GST turnover. Further the supply is outside the scope of GST. You can cancel your GST registration since you are not required to be registered for GST. Information on how to cancel your GST registration is available at www.ato.gov.au

Relevant facts: You an individual that resides outside Australia and are registered for GST. You are not a resident of Australia for Australian income tax purposes. | You have been employed as a contract translator and the translating work is carried out outside Australia and all completed translations are delivered to your supervisor located outside Australia. You are not involved in the further processing of the translations. You do not do any translations in Australia. | Your occasional visits to Australia are recreational only.