Hi
I am registered for GST.
If I hire an overseas contractor and pay directly to their bank account in their own country (through Western Union), can I claim GST?
Thanks
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5,218 views3 replies
3 replies
5,218 views
3 replies
Hi @Prasa1,
You can only claim GST where you have paid GST.
To claim a GST credit, all of the following must apply:
- You intend to use your purchase solely or partly for your business, and the purchase does not relate to making input-taxed supplies.
- The purchase price included GST.
- You provide or are liable to provide payment for the item you purchased.
- You have a tax invoice from your supplier (for purchases more than A$82.50).
Generally, an overseas contractor won't be charging GST given that their business is not performed in Australia and supplies are not brought to Australia.
This means that no GST is paid by you, and therefore no GST credit is able to be claimed since none exist.
Your contractor should have an invoice they provide for their services.
If any GST is payable, it will be included on this.
This will tell you whether or not GST is payable, and therefore claimable.
All replies
Hi @Prasa1,
You can only claim GST where you have paid GST.
To claim a GST credit, all of the following must apply:
- You intend to use your purchase solely or partly for your business, and the purchase does not relate to making input-taxed supplies.
- The purchase price included GST.
- You provide or are liable to provide payment for the item you purchased.
- You have a tax invoice from your supplier (for purchases more than A$82.50).
Generally, an overseas contractor won't be charging GST given that their business is not performed in Australia and supplies are not brought to Australia.
This means that no GST is paid by you, and therefore no GST credit is able to be claimed since none exist.
Your contractor should have an invoice they provide for their services.
If any GST is payable, it will be included on this.
This will tell you whether or not GST is payable, and therefore claimable.
Hi,
If the invoice provided by the overseas contactor doesn’t have an ABN on that, (not an Australian registered business),
but shows 10% GST, ...........without an ABN, I believe this is not a valid tax invoice.
Please explain.
Thanks