Hi, I’d appreciate some clarification regarding my GST obligations as a sole trader.
I’m based in Australia and operate as a sole trader (ABN registered). I provide IT consulting services remotely to a UK-based company. The company has no presence or operations in Australia — all my work is performed from home in Australia and the services are used and consumed by the client overseas.
Over the past 18 months, I’ve been engaged on a series of six-month contracts. My previous turnover was slightly below the $75,000 GST threshold, but if I continue under a new 12-month contract (same rate), my projected turnover will exceed the GST threshold.
From my understanding, once my projected annual turnover exceeds $75,000 I must register for GST. However, as my client is located overseas and the services are provided for use outside Australia, I believe my sales may qualify as GST-free export of services.
Could you please confirm:
- Whether my invoicing to the UK company should be treated as GST-free (0% GST), and what documentation or wording should appear on my invoices to support that classification.
- That if I accept this new contract, at that point I then need to register for GST as my projected annual turnover exceeds $75,000, from solely the services to an overseas client.
Thank you for your help — I just want to ensure I’m managing this correctly before entering the new contract period.
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