Hi ATO Community,
I am seeking clarification on the GST status of a completed contract to ensure my past BAS lodgments remain compliant.
• I am an Australian sole trader registered for GST. • I was engaged by a UK-based recruitment agency (non-resident) who acted as the "Self-Biller." • While the agency is in the UK, the services were physically performed in Australia at the Australian business premises of the agency’s end-client to an Australian market. • I was not initially registered for GST as I was under the turnover threshold. However, part-way through the contract, I hit the threshold and voluntarily registered for GST. I informed the agency of this and provided proof as soon as possible. After some back and forth between myself and the company, and advice from my accountant, the UK agency (acting as the Self-Biller) began issuing Tax Invoices that included GST. I have remitted this GST to the ATO on a cash basis.
The agency is now requesting a refund of the GST paid. They claim the supply is GST-free under Section 38-190(1) Item 2 because they are a non-resident.
My Questions: • Does Section 38-190(3) override the GST-free status in this scenario? Since the services were physically "provided to" an entity in Australia (at the client site), does this make the supply taxable despite the agency being a non-resident? • If the agency issued self-billed tax invoices for nearly a year and the contract is now finalised, am I obligated to amend my BAS and refund them without a formal Private Ruling from the ATO? I want to ensure I am not under-reporting my GST obligations by retrospectively treating a "physically provided" Australian service as GST-free.
Any guidance on the "physical provision" exception would be greatly appreciated.
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