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Re: Do we charge GST?

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We are an Australian business registered for GST. We provide empty shipping container storage, handling, minor repair and empty container transport services in Australia before the container gets repositioned. We are currently in negotiation with an overseas company for its container storage service. The overseas company is a shipping container leasing company not registered for GST in Australia. The client insisted that we should not charge GST on the storage, handling services we are to provide to them because they are non-resident overseas company.

Do we charge GST on the storage/handling services provided?
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Devotee Registered Tax Practitioner

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This may be helpful: 

 https://www.smartcompany.com.au/startupsmart/advice/startupsmart-legal/do-i-charge-my-overseas-clien...

 

If the service is provided inside Australia, it is a local supply so GST should apply.

 

If the service is provided overseas, then probably no GST.

 

Probably safest to get a private ruling, then there can be no argument about it.

 

 

 

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Best answer

Devotee Registered Tax Practitioner

Replies 1

This may be helpful: 

 https://www.smartcompany.com.au/startupsmart/advice/startupsmart-legal/do-i-charge-my-overseas-clien...

 

If the service is provided inside Australia, it is a local supply so GST should apply.

 

If the service is provided overseas, then probably no GST.

 

Probably safest to get a private ruling, then there can be no argument about it.

 

 

 

ATO Certified

TaxTime Support

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Hi @Henry69,

 

Thanks for your question!

 

@Bruce4Tax  has provided some great information, but I'd just like to add some more.

 

GSTR 2018/2 outlines the GST implications for supply of goods connected with the indirect tax zone (Australia). Unless you are exporting the shipping containers for use overseas, then it's likely that GST will be applicable. If the supply of goods is overseas, then you may find that it is classified as an export sale and GST is not applicable.

 

If you would like further guidance, you can email us or otherwise apply for a private ruling for your specific circumstances as suggested above.

 

Hope this helps,

 

Rachael B.

Newbie

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Thanks RachaelB.

Already emailed for clarification.

Newbie

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Thanks Bruce4tax
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