- Australia’s reverse charge GST shifts GST payment from the overseas supplier to the Australian recipient.
- Division 83 is a voluntary reverse charge for one-off or infrequent supplies, used by agreement between both parties.
- Under Division 83, a GST-registered Australian recipient can agree in writing to account for the GST, letting the foreign supplier avoid GST registration.
- Division 84 is automatic and applies when the Australian recipient cannot fully claim GST credits (less than 100% recovery).
- Division 84 applies only if the supply is for consideration, not GST-free or input-taxed, the recipient is GST-registered, and the recipient would have been partially denied credits on a domestic purchase.
Source: rsm.global
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.
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