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GST on services from abroad

Newbie

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Hi, I have a knotty problem which I hope someone can help with. We are an EU-based software company looking at providing an app specifically for an Australian user base. We will be purchasing data in Australia (which will bill us in Europe) and then supplying part of these data, reworked, to the mainly Australian users who will buy our app. Let's say the app costs $10 and is bought by someone in Sydney. Should we charge GST and then pass on the sum to ATO, or is it viewed as a service provided from abroad and therefore outside its scope? Thanks!

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Devotee

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Generally, offshore services imported in Australia for use by Australian (non-business, private) consumers are subject to Australian GST.

 

You must register for GST if your enterprise's Australian sales exceed $75,000 in a 12-mo. period.

 

However for some services supplied through an electronic distribution platform (EDP), such as Apple App Store and Google Play, responsibility for the GST liability is shifted from the supplier to the operator of the EDP. This may be something you need to discus in particular with the EDP you choose to distribute your app.

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Most helpful response

Devotee

Replies 0

Generally, offshore services imported in Australia for use by Australian (non-business, private) consumers are subject to Australian GST.

 

You must register for GST if your enterprise's Australian sales exceed $75,000 in a 12-mo. period.

 

However for some services supplied through an electronic distribution platform (EDP), such as Apple App Store and Google Play, responsibility for the GST liability is shifted from the supplier to the operator of the EDP. This may be something you need to discus in particular with the EDP you choose to distribute your app.

ATO Community Support

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Hi @lhc 

 

@thne is correct.

You can find more information about GST on imported services and digital products on our website.

 

Thanks, Ari

Newbie

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That's great. Thanks both!