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  • #978700
    HBTRADE
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    Hopefully, there is someone about that can answer this one:

    If one was selling websites or webspace provided from another country, the purchase of this space would not include GST (O/S Purchase). As it physically cannot come into Australia (can’t be imported), it should also not be subject to customs duty. Selling it here attracts GST as far as I understand it. No issue with that part.

    Where does the purchase get listed on the BAS?

    There is a section for “Purchases Without GST in the Price” I could use, but have a feeling the GST that shouldn’t exist would be charged.

    #1108901
    Peter – FS Administrator
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    Hi HBTRADE,
    Hope you’re having a good weekend.
    Not one I can help with I’m afraid! But hopefully one of our resident accounts can shed some light on this on Monday?
    Cheers
    Peter

    #1108902
    StellarScott
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    Hi HB

    You are correct there is no GST applicable and forms part of purchases of ‘Purchase without gst in the price’

    Would be included in G11 – Non – capital purchases on the BAS but has no impact on 1B GST on purchases

    In effect no different from buying any GST free item such as milk or services invoiced from overseas

    #1108903
    HBTRADE
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    Thank you for that, but wouldn’t that then add GST to the purchase price of something that doesn’t enter the country, thus shouldn’t be taxed at (wholesale) purchase? I can understand it being taxed at my selling time, as myself & the customer are in AU.

    At the end of it, the ATO will still get what they should, but I don’t want it to look like I’m claiming a GST payment that wasn’t made against one that was.

    Unfortunately, the only guidance available from the ATO is: “It’s not our job to tell you that, see an accountant.” Which I take to mean: “we haven’t a clue, because our rules are too complex to follow”.

    #1108904
    MyGreatIdea
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    HBTRADE, post: 121086 wrote:
    Thank you for that, but wouldn’t that then add GST to the purchase price of something that doesn’t enter the country

    No-one “adds” GST to anything except the supplier of the goods. In this case your supplier is GST exempt, being a non-Australian entity. There will never be any GST added to this purchase.

    but I don’t want it to look like I’m claiming a GST payment that wasn’t made against one that was

    This doesn’t make any sense? If you follow the advice Scott has given, then there is no GST being claimed by you.

    Wendy :)

    #1108905
    James Millar
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    Hey Wendy that’s not entirely correct. If an entity brings goods into Australia worth more than $1000 then generally they are liable for GST on that importation. For these items the administration of GST and logistics are normally dealt with by your customers broker (so on importing you pay the GST element to your broker or customs and not the supplier – as you point out they are based overseas and cannot generally collect GST). So in that regard non Australian entities can and do face GST issues if they try and sell goods into Australia as someone (“the owner”) needs to undertake a customs clearing process which includes paying the GST to customs. Otherwise the goods aren’t released.

    The liability for customs clearance and therefore GST becomes a question of who is the “owner” as referred to in the Customs Act. It can really only be one of three parties. The foreign supplier, the local buyer (if there is one) or the appointed customers broker (as agent for the transaction).

    So the GST administration on imports (by customs) is the exception to the general rule that the seller charges and collects GST.

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1108906
    MyGreatIdea
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    Yes James, but in this case the OP isn’t bringing anything into the country, he is purchasing a website. My answer relates only to his situation.

    Wendy :)

    #1108907
    James Millar
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    Couple It, post: 121090 wrote:
    No-one “adds” GST to anything except the supplier of the goods.

    Yeah realise this topic is primarily about intangibles but I was clarifying your reference to the word “goods” (tangibles). I don’t mean to hijack your comments – just making sure its clear that “goods” imported into Australia can have more complex GST administration issues.

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
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