- The Australian Taxation Office issued a GST ruling clarifying GST exemption rules for cross-border services and digital products.
- Supplies to non-resident customers can be GST-free unless certain conditions are met.
- GST applies if the supply is used or delivered in Australia, an agreement exists with a non-resident, and no specific exemptions apply.
- The ruling emphasizes the recipient’s location over the supply’s origin.
- Agreements with non-residents can be formal or informal and may involve intermediaries.
- The ruling is applicable both retrospectively and prospectively.
- Businesses involved in cross-border supplies should review the ruling’s impact to ensure compliance.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
