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Australia

Explore the requirements and rules that apply to electronically supplied services in Australia.

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Supplies of e-services to consumers (B2C)

Is a non-resident supplier of e-services to consumers located in this country obliged to register and/or account for local VAT/GST on such supplies in this country?

Yes, from 1 July 2017, GST applies to services that are supplied electronically by non-residents who do not have a permanent establishment (“PE”) for GST purposes in Australia where the supply is made to an Australian end consumer (i.e. an Australian resident who is not registered for GST).

From 1 July 2017, non-resident suppliers without a GST PE are required to register for GST if the B2C supplies they make to Australian consumers meet or exceed 75,000 Australian dollars (AUD) in a 12 month period (regardless of where the service is performed).

Prior to 1 July 2017, non-resident suppliers without a GST PE were required to register for GST if the electronic services supplied using Australian servers met or exceeded AUD75,000 in a 12 month period.

If there is no current requirement, is there any anticipated change to that position?

Not applicable, requirement is already in place.

Is an invoice compliant with the VAT/GST law in the customer's country required?

No.

Supplies of e-services to businesses (B2B)

Is a non-resident supplier of e-services to business customers located in this country obliged to register and/or account for local VAT/GST on such supplies in this country?

No, where these supplies are made to Australian-based business recipients (that are registered for GST), the supplies will not be subject to GST.

If there is no current requirement, is there any anticipated change to that position?

No.

If there is not a requirement for the non-resident supplier to register for VAT/GST, are the services subject to VAT/GST withholding by the customer?

No.

Where there is a current or future requirement for non-resident suppliers to register and/or account for local VAT/GST or a customer VAT withholding requirement:

When did/will that requirement come into effect?

1 July 2017

What is the applicable annual turnover threshold (in local currency) for that requirement to apply?

AUD75,000

Is simplified or standard registration required?

It is optional. From 1 July 2017, non-resident entities that are making taxable supplies to Australian consumers have the option to register for GST under the normal rules or under a simplified registration process.

If the simplified GST registration is chosen the entity will only need to report GST payable on sales (and cannot claim any GST credits) on a quarterly basis.

Does the requirement apply to all e-services?

Yes

Contacts

Kate Law
Partner
T +61 2 9346 6080
E katelaw@kpmg.com.au
 

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