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_Tim2222(Dynamo)Dynamo
6 Aug 2021

Hello, just for this financial year had a question please I am a sole trader digital animator and I make my living my doing visual animation projects here in Aus (am a full time permanent resident and citizen). I also sell electronic items manufactured and shipped from china only (I hold no stock and never will) to overseas customers online additionally. I’m currently not registered for GST and have the following conundrum if someone can please help. Assuming under my sole trader gross income for this financial year is $68k for all of my work in total But then my online store sales under my ABN are $43k for the electronics manufactured, shipped overseas, does this $43k not count toward my total GST turnover calculation since “The sale is not connected with Australia because they are physical goods that are: A sale of goods is connected with Australia if the goods are any of the following:

  • delivered or made available in Australia to the purchaser
  • removed from Australia
Not delivered, or made available in Australia or removed from Australia. They are made and delivered from China, just sold by my online store.
  • brought to Australia – provided the seller either imports the goods or installs or assembles the goods in Australia.
Not brought to Australia/imported/installed at all, ever
  • from 1 July 2018, supplies of low value imported goods to a consumer in Australia
None of that to Australia as customers are international mainly America I understand the sale is GST free since its exported to an international customer, but is the 43k classified 100% as ‘sales not connected to Australia’ since the sales of the goods are sales of goods both 1) not connected to Australia (even though they are sold by an Australian sole trader) and 2) not manufactured, made or delivered from Australia (they are manufactured, made and delivered from china) can someone please clarify? It would mean so much to me as I’m worried and want to do the right thing, but it would make no fiscal sense for me to even continue the online store if that means GST registration and therefore GST on all of my Australian connected existing service sales in my animation business here in aus. :( thank you all x 1 billion :smileyvery-happy:

2,265 views
8 replies
2,265 views
8 replies

Most helpful response

Most helpful replyATO Certified Response

JasonT(Community Support)Community Support
ATO Certified Response9 Aug 2021

Hi @Tim2222,

I have good news;

Your GST turnover is your total business income (not your profit), minus:

    • GST included in sales to your customers
    • sales that aren't for payment and aren't taxable
    • sales not connected with an enterprise you run
    • input-taxed sales you make
    • sales not connected with Australia

    Youve determined the sales are not connected with Australia. I agree, based on the factors youve provided. Those sales dont meet the criteria for taxable sales. Theyre sales not connected with Australia, dont include them in your GST turnover calculation.

    All the best for your business moving forward ?

    All replies

    Most helpful replyATO Certified Response

    JasonT(Community Support)Community Support
    ATO Certified Response9 Aug 2021

    Hi @Tim2222,

    I have good news;

    Your GST turnover is your total business income (not your profit), minus:

      • GST included in sales to your customers
      • sales that aren't for payment and aren't taxable
      • sales not connected with an enterprise you run
      • input-taxed sales you make
      • sales not connected with Australia

      Youve determined the sales are not connected with Australia. I agree, based on the factors youve provided. Those sales dont meet the criteria for taxable sales. Theyre sales not connected with Australia, dont include them in your GST turnover calculation.

      All the best for your business moving forward ?

      • Avatar of man with black hair and beard
      Liked by _Tim2222
      _Tim2222(Dynamo)Dynamo
      9 Aug 2021

      Jason you are AMAZING. Thank you so much for SUCH a clear and concise answer, I can't thank you enough and this alleviates a lot of my stress . You are so incredibly helpful, thank you Jason.

      Liked by JasonT
      _Tim2222(Dynamo)Dynamo
      11 Aug 2021

      Quick question ; does this apply for graphic design art sales made by overseas vendor and posted digitally to an overseas customers by overseas vendor? For example selling graphic digital art that is delviered digitally, made by a person in the USA or Phillipines, delivered via email by that supplier in USA or Phillipines to the customer overseas or whoever orders it, that would not be subject to gst as its an overseas export to a non Australian customer even though it's not a physical product? If you could please clarify thank you

      BlakeATO(Community Support)Community Support
      18 Aug 2021

      Hi @Tim222

      Yep, it would. A digital product is still a product. From the description you've given, it never comes to Australia, so it's not a sale connected to Australia. Even if it does, it'd be an export anyway, which is GST-free if the goods are given within 60 days of the invoice or payment date.

      • Avatar of man with black hair and beard
      Liked by _Tim2222
      _Tim2222(Dynamo)Dynamo
      18 Aug 2021

      Perfect, thank you SO much @BlakeATO & @JasonT for your advice and confirmation. So to confirm 110%; If a sale of product (whether digital or physical) never comes to australia, is made internationally and delivered internationally (even if the sale OCCURS within Australia), that sale is not connected to Australia for the 75k GST threshold calculation purposes?

      WilliamHu(Champion)Champion
      11 July 2022

      Hi @JasonT ,


      Thanks for your reply. My company has the same situation and has worked out that all its sales are not connected to Australia and should not count to GST turnover.


      Just wondering that if the company voluntarily register for GST, can we still claim back the GST from the purchase we make in Australia,which are associated with the sales that are not connected to Australia.

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