I work for an US company in Australia (Company A - OZ)) and we have a situation where employees in our US company (Company A - US) performs services to,
- To another US company in the USA (Company B - US) which has a subsidiary in Australia (Company B - OZ). The arrangement is to do the invoicing locally in Australia (between Company A - OZ to Company B - OZ) and currently we don't charge GST stating that the services is not connected with Australia. Is it the correct approach? Is the GST applicable to invoicing between two Australian entities with ABN's irrespective where the work / services is carried out?
- Where the US company (Company A - US) directly carries out work / services to the local company (Company B - OZ) and ask us (Company A - OZ) to invoice for the services. Same as above situation but service is directly to the Australian company (Company A - US to Company B - OZ). Currently we don't charge GST stating that the services is not connected with Australia. Is it the correct approach? Is the GST applicable to invoicing between two Australian entities with ABN's irrespective where the work / services is carried out?
If GST is applicable then where can I find the GST ruling on services carried out overseas but invoicing is between two Australian entities? I need to show the management the correct GST ruling with an example. I couldn't find any example in the ATO legal data base. Appreciate guidance on this.
There is no subsequent transfer of funds between the entities as the both companies are owned by the same US owner (100%). The companies are separate legal entities in USA and Australia and there is no Group and subsidiary relationship either.
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