Australia – GST registration obligation for non-established e-service providers

On 9 April 2015, the Australian Treasurer announced that the government will be introducing new GST measures aimed at overseas companies supplying digital services into Australia. The Treasurer stated that “a company providing intangible services into Australia, such as media services or so on, wherever they are located they should charge GST on those services.”

Specific details of the proposed changes are not available yet, however, they are widely anticipated to be announced in the May 2015 Budget (on 12 May 2015).

What does it mean for you?

Preliminary issues for consideration include how broad the interpretation of ‘intangible services’ will be, what the proxy will be for consumption in Australia, whether the changes will impact B2C transactions only (or also B2B), the date of effect of the changes and whether there will be a registration threshold under which overseas entities will not be required to remit any GST on these types of supplies.

SAVE THE DATE – We plan to have a webcast on 14 May on this topic, which you are welcome to join. Please visit later for the exact time and joining instructions.

For a deeper understanding you can contact Suzi Russell-Gilford (suzi.russell-gilford@au.pwc.com) or Brady Dever (brady.dever@au.pwc.com) of PwC Australia.

About Andras Salanki

Manager PwC Switzerland email: andras.salanki@ch.pwc.com Office: +41587924536

Andras Salanki is an international VAT advisor with 7 years of relevant professional experience. He spent one year on secondment in California, US, where he advised US multinationals on global VAT projects and also gained experience with IT and Internet companies based in the Silicon Valley.