Private ruling: GST - electronic distribution platform
Date of advice: 25 May 2026
Published: 17 August 2026
Ruling period: All periods after DD MM 20YY

Ruling: Q1: Is the service that you provide in your e-commerce solution, an 'Electronic Distribution Platform' for the purposes of subsection 84-70(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)? | A1: Yes. | Q2: Does section 84-55 of the GST Act apply to the offshore supplies of low value imported goods made through your e-commerce solution due to subsection 84-81(3) of the GST Act? | A2: Yes.

Relevant facts and circumstances: • You are a private company incorporated in an overseas jurisdiction. • You do not have a presence in Australia. • Your clients (e-commerce merchants) advertise their goods for sale on their domestic websites which are not based in Australia. • Your clients make online sales of low value imported goods. • Your clients are offshore and their goods are not sourced in Australia; nor are they the importer of their goods into Australia. • The goods that are the subject of this ruling are covered by subsection 84-79(3) in that they have a customs value of $1,000 or less at the time when the consideration for the supply was first agreed and the goods are not tobacco, tobacco products or alcoholic beverages. • You provide 3 e-commerce solutions: 1. International growth solutions for merchants by providing marketing operation services to attract new international buyers that are outside the countries that your e-commerce merchants currently supply to 2. Localised checkout solutions for merchants 3. Duties and taxes calculation with a carrier integration to generate shipping documents. • You charge the following fees to their clients for these services: 1. A yearly subscription 2. Localisation and marketing service - commission on gross merchandise value 3. Checkout service - commission on transaction and extras 4. Cross-border service - commission on transactions. • Your e-commerce solution is software that uses an Application Programming Interface (API) which is a set of rules and protocols that allows two different software programs to communicate and exchange data with each other. This API enables your service to merchants to be provided in real time by fully automated communication. • The API creates a proxy server to create a localised version of the merchant's website. • You attract new international sales with automated social and organic search marketing on different marketing platforms • The relevant steps are: 1. When a buyer sees an advertisement for a product being sold by a merchant by a merchant and clicks on the link they are routed to your proxy server 2. Your e-commerce solution determines the location of the consumer and whether they are an Australian consumer 3. The proxy server sends real time requests to the merchant's server, including requests for product and pricing information 4. The proxy server collects the merchants page information 5. The proxy server returns a localised version of the merchant's webpage to the buyer's browser, including translation and currency conversion. This proxy server of your website will frame the merchant's website 6. When the buyer checks out the proxy server shows a localised checkout which supports local payment methods and tax and duty calculations 7. You act as a platform or technical payment gateway to offer payment processing services. Payment services providers create a virtual Merchant's escrow account to store the funds linked to the merchants' transaction, minus fees due to you. 8. You manage chargebacks to shoppers, acting on behalf of the merchants as a platform 9. If a merchant has elected to utilise your shipping services, you will provide a quote for domestic handling, international shipping, and estimated import fees for the relevant country in the checkout 10. Once the buyer makes payment, the proxy server sends an invoice to the buyer which shows the merchant as the seller 11. The proxy server sends this information to the merchant so they can fulfil the order 12. The merchant's goods are delivered from overseas to Australia to meet a purchaser's order. • You apply a set of price localisation rules to get the display price. This involves the following: 1. Calculating the net price by removing the domestic VAT if any is included. 2. Applying a price adjustment if any 3. Doing currency conversion 4. Adding the destination VAT/ GST if required 5. Adding the import duties (if any applicable) 6. Adding the shipping costs (if any applicable) 7. Price rounding (if applicable) • Your Merchant Terms of Service states that you choose the payment service providers that are used for the merchant's transaction. • Your Merchant Terms of Service explains that when visitors request a merchant's webpage that it connects to a proxy server, that shows a localised version of the merchant's page which is essentially your website. • You act in your own name on behalf of the merchant without taking title to the products, legally binds the merchant when selling goods on their behalf, do not hold legal title to the goods at any stage of a sale facilitated by its e-commerce solution, can prevent a sale in progress and provides compliant invoicing solutions for merchants or on behalf of merchants for successful sales.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 84-55 | A New Tax System (Goods and Services Tax) Act 1999 section 84-70 | A New Tax System (Goods and Services Tax) Act 1999 section 84-79 | A New Tax System (Goods and Services Tax) Act 1999 section 84-81

Reasons for decision: Summary: Unless expressly quoted all references in this ruling are to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). Is your e-commerce solution, an 'Electronic Distribution Platform'? Law Companion Ruling LCR 2018/2 GST on supplies made through electronic distribution platforms (LCR 2018/2) explains the Electronic Distribution Platform rules (EDP rules). The EDP rules require that supplies made by you meet four steps: Step 1 Is the supply made through an EDP? Step 2 Is the supply subject to the EDP rules? Step 3 Is the supply excluded from the EDP rules? Step 4 If multiple EDPs are involved, is the EDP operator responsible for GST? If each of the EDP rules is satisfied, you (instead of the merchant) are treated for GST purposes as: 1. having made the supply, 2. having done so for the consideration for which the supply was made, and 3. having done so in the course or furtherance of an enterprise that you carry on. | Detailed Reasoning - Subsection 84-70(1): Section 84-70 explains the meaning of an EDP. The definition provides that an EDP is: (1) A service (including a website, internet portal, gateway, store or marketplace) is an electronic distribution platform if: (a) the service allows entities to make supplies available to end-users; and (b) the service is delivered by means of electronic communication; and (c) any of the supplies that are inbound intangible consumer supplies are to be made by means of electronic communication. A service will be an EDP for offshore supplies of low value goods where it satisfies the first two positive elements found in subsection 84-70(1). However, there are some exclusions. | Detailed Reasoning - Provides a service: - meaning of 'service':: Paragraph 20 of LCR 2018/2 states a service that can be an EDP includes (but is not limited to) a website, internet portal, gateway, store or marketplace. The wording in subsection 84-70(1) states a service includes a number of examples, and paragraph 20 of LCR 2018/2 indicates that something else apart from the examples given in the subsection may be considered to be an EDP. The description of service is very broad. Your software uses an Application Programming Interface (API) which is a set of rules and protocols that allows two different software programs to communicate and exchange data with each other. This API enables your service to merchants to be provided in real time by fully automated communication. Each example listed in subsection 84-70(1) of 'website', 'internet portal, 'gateway', 'store' or 'marketplace' is not defined in the Dictionary in section 195-1. Your Merchant Terms of Service explains that when visitors request a merchant's webpage that they in fact see your webpage, a localised version of the merchant's page. You are engaged in rendering services to merchants with your e-commerce solution providing a webpage that provides a localised page and checkout/shipping solutions including taxation compliance solutions. | Detailed Reasoning - Does the service allow entities to make supplies available to end-users?: Paragraph 24 of LCR 2018/2 states that an EDP is a service which allows entities to make supplies available to end-users. In addition, LCR 2018/2 at paragraph 27 explains that a service is not an EDP if it only builds or maintains the infrastructure behind a service that makes supplies available to end-users. For example, a service provider who builds a website including a shopping cart functionality (for the operator of a website) is not itself an EDP. When a consumer clicks a marketing link to buy a good from a merchant's website, your localisation proxy server takes over in real time and shows a localised version of the merchant's page on your webpage. You have control of various steps required to facilitate the transaction between the merchant and the consumer, such as: • determining location of the consumers and if they are an Australian consumer; • setting the final price of the sale - you will calculate and add the correct rate of GST at the checkout; • allowing a service integration with payment service providers; • providing compliant invoicing solutions for merchants for successful sales. Once a buyer clicks on your localised version of the merchant's website, your e-commerce solution must be used in order to allow a transaction between a merchant and a consumer/end-user to progress to a successful sale to the end-user. Paragraph 29 and 30 of LCR 2018/2 provides an example of a service that allows entities to make supplies available to end user 29. Tansy Platform has a variety of merchants' storefronts on its platform. The platform allows merchants to interact with buyers. Jeremiah decides to search Tansy Platform to find upholstery fabric. He accesses Ruth's store on Tansy Platform and adds the fabric to his shopping cart. When he checks out online, the sale of the fabric is processed through the platform." 30. As Tansy Platform provides a means for merchants to receive offers and to sell their products, it meets the requirement that the service allows entities to make supplies available to end-users." From the facts, you do more than merely build or maintain infrastructure. You control key elements of the transaction process, including pricing, localisation, payment integration, and tax calculation. Your advertising creates links that send a buyer to a webpage that is your website created by the localisation proxy. When a buyer uses this website all aspects of the merchant's operations are performed by you including translation, currency conversion, checkout service (including tax calculation), and payment services. In some cases, the merchant also engages your services to ship the goods. As discussed in Paragraph 30 above your website also provides a means for merchants to sell their products, allowing merchants to make supplies available to end-users. Accordingly, the first requirement of paragraph 84-70(1)(a) is satisfied | Detailed Reasoning - Is the service delivered by means of electronic communication?: The second requirement is that the service allows entities to make supplies available to end-users which must be delivered by electronic communication according to paragraph 84-70(1)(b). Paragraph 33 of LCR 2018/2 states the following: "33. Electronic communication is defined to mean: 16 (a) a communication of information in the form of data, text, or images by means of global and/or unguided electromagnetic energy; or (b) a communication of information in the form of speech by means of guided and/or unguided electromagnetic energy, where the speech is processed at its destination by an automated voice recognition system. Section 195-1 states that 'electronic communication' has the same meaning as in the Electronic Transactions Act 1999 , which is section 5 of that Act. Paragraph 34 of LCR 2018/2, states that the delivery can be made by a website. Your Merchant Terms of Service explains that when visitors request a merchant's webpage that it connects to a proxy server, that shows a localised version of the merchant's page, which is your website framing the merchant's localised website. You provide a technology platform to merchants engaged in online supplies of digital services under the form of an API. This API enables your intangible services to be provided in real time, electronically, and without human intervention therefore the service is delivered by electronic communication. Accordingly, the second requirement of subsection 84-70(1) is satisfied (subparagraph 84-70(1)(b)). As the supplies under consideration are offshore supplies of low value goods (and not inbound intangible consumer supplies), the third requirement in paragraph 84-70(1)(c) is not relevant in determining whether the service is an EDP in this case. | Detailed Reasoning - Services excluded from the definition of EDP: Subsection 84-70(2) outlines the circumstances where a service is excluded from the definition of an EDP. (2) However, a service is not an electronic distribution platform solely because it is: (a) a carriage service (within the meaning of the Telecommunications Act 1997 ); or (b) a service consisting of one or more of the following: (i) providing access to a payment system; (ii) processing payments; (iii) providing vouchers the supply of which are not taxable supplies because of section 100-5. | Detailed Reasoning - Service is not an EDP solely because it is a carriage service: A carriage service is described in LCR 2018/2 at paragraph 43 as: ... A carriage service is a service for carrying communications by means of guided or unguided electromagnetic energy. It includes services such as those provided by an internet service provider, pay telephony and broadband, but not content services such as pay television. Your e-commerce solution is a software platform, it is not a carriage service for carrying communications by means of guided or unguided electromagnetic energy. Therefore, your e-commerce solution is not excluded from being an EDP under the first requirement of paragraph 84-70(2)(a). The remaining exclusions in paragraph 84-70(2)(b) as set out above need to be considered. | Detailed Reasoning - Payment service or processing of payments: Your e-commerce solution provides a number of integrated services: • Advertising for your client's product • Providing localised version (translation, currency conversion) of your client's webpage page within your website framing the merchant's website • Providing a localised checkout which supports local payment methods (currency conversation) and tax and duty calculations and shipping cost calculation • Providing a payment gateway and offering payment processing services. • Providing shipping services if required providing quotes for domestic handling, international shipping, and As discussed above you provide a number of integrated services and you do not solely provide payment processing or a means to provide access to a payment processor. | Detailed Reasoning - Providing face value vouchers: Subparagraph 84-70(2)(b)(iii) provides that a service of providing vouchers the supply of which are not taxable supplies because of section 100-5 is not an EDP. You do not provide vouchers for supplies that are not taxable supplies due to section 100-5 (commonly called face value vouchers). Consequently, there are no situations in which this subparagraph will apply. Therefore, the service that you provide through the product meets the requirements of subsection 84-70(1) and is not excluded by subsection 84-70(2) and the requirements in Step 1 are satisfied. | Detailed Reasoning - Step 2: Is the supply subject to the EDP rules?: An operator of an EDP will be responsible for GST provided there are no exclusions in Steps 3 and 4 and the supply is made through an EDP and the supply is: • a supply of a digital service or digital product (inbound intangible consumer supply) - subsection 84-55(1). • a digital supply that is not an inbound intangible consumer supply but there is an agreement in relation to these supplies pursuant to section 84-60. • an offshore supply of low value goods - subsection 84-81(3). Paragraph 58 of LCR 2018/2 provides by way of practical guidance, unless the EDP operator has information to the contrary at the time of the transaction, if their agreement with the merchant supplying digital services or digital products specifies a business address for the merchant: "in Australia, it is reasonable to assume that the supply is not an inbound intangible consumer supply (and that therefore the merchant, and not you, will be responsible for GST)." Paragraph 50 of LCR 2018/2 states the EDP rules do not apply if the supply is connected with Australia because the goods are sourced within Australia, or the merchant is the importer. The relevant supplies are offshore supply of low value goods made by merchants through your platform. The supply is not connected with Australia as the goods are sourced overseas and they are not being imported into Australia by the merchant. Therefore, the requirements in subsection 84-81(3) are met and step 2 is satisfied. | Detailed Reasoning - Step 3: Is the supply excluded from the EDP rules?: You won't be responsible for GST on supplies made through your platform where the exclusion under subsection 84-55(4) applies. In this situation, the merchant, instead of you, will be responsible for GST. For the exclusion to apply, all of the following criteria must be met in relation to a supply made through the platform: The EDP operator does not authorise: • the charge to the recipient of the supply • delivery of the supply • the EDP operator does not set (whether directly or indirectly) any of the terms and conditions under which the supply is made • a document relating to the supply issued to the recipient identifies the supply and the merchant as the supplier of that supply, and • the merchant and the EDP operator have agreed in writing that the merchant is the entity liable for paying the GST for the supply. Alternatively, the merchant and the EDP operator have agreed in writing that the merchant is the entity liable for paying GST for a class of supplies that includes the supply concerned. Paragraph 89 of LCR 2018/2 explains examples when an EDP operator where an EDP operator directly or indirectly sets any of the terms or conditions under which a supply is made include where the EDP operator requires. Of specific relevance is the requirement of merchants to accept one or more specific payment methods or shipping or delivery methods to be used in fulfilling the transaction. As you require the merchant to use your payment services you indirectly set the terms and conditions under which the supply is made therefore, the exclusion in subsection 84-55(4) does not apply and the requirements of step 3 are satisfied. | Detailed Reasoning - Step 4: if multiple EDPs are involved, which EDP operator is responsible for GST?: Section 84-55 of the GST Act discusses the scenario where there is more than one EDP involved in the transaction. In this situation Paragraph 105 of LCR 2018/2 explains that there are special priority rules to ensure that only one of the EDP operators is responsible for GST on the supply. 105. In some circumstances, an inbound intangible consumer supply or an offshore supply of low value goods may be made through multiple EDPs. There are special priority rules to ensure that only one of the EDP operators is responsible for GST on the supply. You have advised that there will not be multiple EDP operators involved in the transaction. Based on the facts provided the priority rules in section 84-55 are not relevant you are responsible for the GST on the supply. Accordingly, the requirements in Step 4 are satisfied. | Summary: The requirements of the 4 steps have been met; therefore Section 84-55 of the GST Act applies to the offshore supplies of low value imported goods made through your e-commerce solution due to subsection 84-81(3) of the GST Act. Consequently, the GST on the supply is payable by you, the operator of the EDP.