1 Are the supplies you make under Scenario 1 and Scenario 2 included in the turnover calculation, thus requiring you to be registered for GST?
Yes, supplies you make under Scenario 1 and Scenario 2 are included in the calculation of turnover for GST purposes. However, the supplies you make under Scenario 1 are GST-free as all the requirements of section 9-5 of the GST Act are not met. The supplies made under Scenario 2 will be taxable supplies provided all the requirement of section 9-5 of the GST Act are met. This ruling applies for the following period : XX The scheme commences on: XX
You are a sole trader and are not registered for GST. You are a tax resident in Australia. Your sole trader business activities consist of copy writing and content writer. You write contents that appears on businesses websites to help them sell a product or service. Currently, majority of these writing services are provided to clients overseas and you have entered into a contract directly with them. (Scenario 1) The money gets paid to your business account here in Australia. (Scenario 2) You have acquired one regular client in Australia.
A New Tax System (Goods and Services Tax) Act 1999 section 9-5 A New Tax System (Goods and Services Tax) Act 1999 section 38-190 Detailed reasoning Note: Where the term 'Australia' is used in this document, it is referring to the 'indirect tax zone' as defined in section 195-1 of the GST Act. GST is payable on a taxable supply. A supply is a taxable supply under section 9-5 of the GST Act if: (a) the supply is made for consideration; and (b) the supply is made in the course of the enterprise that the supplier carries on; and (c) the supply is connected with Australia; and (d) the supplier is registered or required to be registered for GST. However, the supply is not a taxable supply to the extent that it is GST-free or input taxed. Scenario 1: You supply services to clients registered