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Re: Australian sole trader working in Australia offering services to a German Company

Newbie

Views 44

Replies 3

I am an australian resident, for tax purposes, living in Victoria. I recently started my own business. now bein self employed as a sole trader i have an ABN. I work as a food photographer and recipe author offering these services. I hab recently been contacted by a german online recipe magazin, they have asked if i could provide them with recipes and photos. I will be working from my home in Australia at all times.

The workload is aprox. 20hour a week and I will be providing my services for this company for 6-8 months.

1. Do I have to pay my income tax just as usual in australia? Do i have to pay german income tax? Will I be double taxed? How does it work? How much income tax do I pay?

2. How do I invoice this company? Do I have to add australian GST? I've read somewhere that on services there is no GST added to the invoice?

 

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee Registered Tax Practitioner

Replies 2

1. Do I have to pay my income tax just as usual in australia?

Yes

 

Do i have to pay german income tax?   Will I be double taxed?

No, because you are not resident there

 

How does it work? 

Exactly the same as if you did contract work in AUS, except that your service is an export  =>  no GST

 

How much income tax do I pay?

That depends on how much you earn for the year, from all sources.

 

2. How do I invoice this company?

Create the invoice and email it to them  -  then they pay it by EFT to your bank account.

 

Do I have to add australian GST? 

No  -  this is classed as an export.

 

 

 

3 REPLIES 3

Most helpful response

Devotee Registered Tax Practitioner

Replies 2

1. Do I have to pay my income tax just as usual in australia?

Yes

 

Do i have to pay german income tax?   Will I be double taxed?

No, because you are not resident there

 

How does it work? 

Exactly the same as if you did contract work in AUS, except that your service is an export  =>  no GST

 

How much income tax do I pay?

That depends on how much you earn for the year, from all sources.

 

2. How do I invoice this company?

Create the invoice and email it to them  -  then they pay it by EFT to your bank account.

 

Do I have to add australian GST? 

No  -  this is classed as an export.

 

 

 

Newbie

Replies 1

Do I still not have to add GST on this service if i earn more than 75K a year?

Devotee Registered Tax Practitioner

Replies 0

Do I still not have to add GST on this service if i earn more than 75K a year?

 

If sales are $ 75K +  then you need to register for GST, but export sales are still exempt.