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Paying GST for business overseas

Written by Rick Fitzpatrick • Director & Founder
Published on 13 Oct 2016

Are you doing business overseas? October 1, 2016, saw new changes to Australian GST law, meaning that you are no longer required to pay GST on certain transactions between your business and businesses overseas.

These new changes have also introduced a reduction to compliance costs for GST registered importers with regard to calculating the value of taxable importations for business overseas.


Working with Non-Resident Businesses

More supplies of services by Australian businesses to non-resident (business overseas) businesses will now be GST-free. This means non-resident businesses will have a reduced need to interact with the Australian GST system.

Examples of supplies that may now be GST-free include:

  • when an Australian business makes a supply of training services to an overseas company but provides those services to one of the company’s employees in Australia
  • when an Australian business supplies repair services to an overseas company, but the supply is provided to an entity in Australia in order to fulfil the overseas company’s obligations under a warranty.


I’m a GST-registered importer what’s different now?

If you’re a GST registered importer, you will not be required to identify the exact amount paid for the following items:

  • International transport
  • Insurance
  • Loading or handling
  • Service costs for transport


Supply excluded from GST by non-resident suppliers

The transactions listed below are no longer associated with Australia for non-residents suppliers, meaning a non-resident supplier would not be subject to GST on these transactions:

  • Supplies of intangibles (such as services and digital products) which are done in Australia are not connected if the recipient is an Australian-based business recipient or a non-resident acquiring the intangibles for their overseas enterprise
  • A transfer of ownership of leased goods which are located in Australia, where the transfer takes places between non-residents that do not have an enterprise in Australia
  • A supply of goods where the supplier installs or assembles the goods in Australia, but does not import the goods into Australia.


Two things to make sure of

  1. Check whether GST is applicable to your overseas business transactions
  2. Contact us if you require any clarification or advice.

Check out another recent blog in this category.

Rick Fitzpatrick is the founding director of Fitzpatrick Group. Rick is a Certified Practising Accountant (CPA), Chartered Accountant (CA), Registered Company Auditor, Registered Tax Agent and Certified Business Coach.
Authour \u2022 Rick Fitzpatrick

Director & Founder, Fitzpatrick Group

Post Categories: Small Business | Tax Essentials

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