Explore the requirements and rules that apply to electronically supplied services in Australia.
For B2B; Is a non-resident vendor, without permanent establishment, selling cross-border electronically supplied services to a B2B customer located in your jurisdiction required to register for and charge VAT/GST?
For B2C; Is a non-resident vendor, without permanent establishment, selling cross-border electronically supplied services to a B2C customer located in your jurisdiction required to register for and charge VAT/GST?
From 1 July 2017, non-resident suppliers without a GST PE will be required to register for GST if the B2C supplies they make to Australian consumers meet or exceed A$75,000 in a 12 month period (regardless of where the service is performed). Prior to 1 July 2017, Where the B2C electronic services are supplied using Australian servers, and the entity meets or exceeds the GST registration turnover threshold of A$75,000 in a 12 month period.
If there is not a requirement to register B2B , is there either
None of the listed
If there is not a requirement to register B2C , is there either
See above; from 1 July 2017, GST will apply to services that are supplied electronically by non-residents who do not have a GST PE in Australia where the supply is made to an Australian end consumer (i.e. an Australian resident entity that is not registered for GST).
Where these supplies are made to Australian-based business recipients (that are registered for GST), the supplies will not be subject to GST.
Non- EU Suppliers: If your country requires non-resident sellers of e-services to register for VAT/GST, when did/will those rules come into effect?
EU Suppliers; If your country requires non-resident sellers of e-services to register for VAT/GST, when did/will those rules come into effect?
If there is no requirement to register (i.e Q1 reply is no); are electronically supplied services by a non-resident vendor subject to a VAT withholding mechanism by the customer (e.g., Russia on B2B supplies and Colombia on B2C supplies)
Where the services are supplied through an interface or a portal such as a marketplace for applications (e.g. Google Play or the App Store), is the originator of the content or the interface/portal responsible for registering for and remitting the VAT/GST on those services?
Currently: The supplier of the services is responsible for registering for and remitting any GST on taxable supplies they make through an online marketplace.
From 1 July 2017: Online marketplace operators will generally be responsible for the GST on taxable supplies made through their platforms.
Where the operator does not authorize the charge to the customer, does not authorize delivery and does not set any of the terms and conditions under which the supply is made, then the operator and supplier can agree in writing that the supplier will be the entity responsible for the GST on the supply.
What is the applicable registration threshold, in local currency, for electronically supplied services by a non-resident vendor (if any)?
If there is a registration threshold, what is the periodical limit (e.g. annual, quarterly, monthly etc.)?
If registration is required, is it a simplified registration (collection of output tax only), or a standard registration (collection, input tax credits, etc.)?
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.
The simplified GST registration is expected to be available from 26 June 2017, and if chosen, will require the entity to only report GST payable on sales (and will not allow the entity to claim any GST credits) on a quarterly basis.
Is a non-resident vendor, registered for VAT/GST purposes because of cross border sales of services, required to issue a VAT/GST compliant invoice? (complying with the VAT/GST invoicing requirements in the country of consumption, rather than supplier’s country)
Does the requirement to register apply only to B2C transactions, or to both B2C and B2B transactions?
Do the requirements apply to all services provided electronically?
Do the requirements apply to digital streaming of content (audio, image, video)?
Do the requirements apply to digitally supplied software and apps?
Do the requirements apply to cloud storage?
Do the requirements apply to internet based voice communication services e.g. VoIP?
Do the requirements apply to telecom services?
Do the requirements apply to digital streaming of content?
Do the requirements apply to broadcasting services?
Do the requirements apply to any services NOT mentioned in the previous sections? If so which ones?
Currently: Australian GST applies to supplies of intangibles where the thing supplied is done in Australia or through an enterprise that is carried on in Australia (i.e. a GST PE).
Relevantly, a supply of electronic services will be ‘done’ in Australia where the services are delivered using servers located in Australia. A supply of rights will be 'done' in Australia where the agreement/contract is made in Australia.
From 1 July 2017: Australian GST will apply to all supplies of services and intangibles made to Australian end consumers (i.e. B2C supplies).
We note that the comments provided are general in nature, and do not canvass every aspect of the way in which Australian GST may apply to digital supplies. Specific tax advice should therefore be sought for any particular client / engagement
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