Sole trader, contracted to a European-based company for services. This company does not have a presence in Australia and is 100% of my work. I would earn over the GST threshold annually, and so I have registered and been charging for GST for many months. I'm unsure if I needed to do this if the client does not have a physical business in Australia. Is this correct? Or if I shouldn't be charging GST, can I recover the GST I have paid already?
Hey @Feather,
You shouldn't be charging them GST. The only time you'll charge a foreign entity GST is if the service you provide is used in Australia. A supply of a service is GST-free if the recipient is outside Australia, and the use of the service is outside Australia.
If you've charged them GST incorrectly, you'll need to correct your BAS and reimburse the client the GST they've been charged.
Hey @Feather,
You shouldn't be charging them GST. The only time you'll charge a foreign entity GST is if the service you provide is used in Australia. A supply of a service is GST-free if the recipient is outside Australia, and the use of the service is outside Australia.
If you've charged them GST incorrectly, you'll need to correct your BAS and reimburse the client the GST they've been charged.
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