Buying services from Oz

Forums › Off topic › Buying services from Oz - we pay GST?

MooPoo

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#74385 28-Dec-2010 21:20

Hi

Just wondering if we need to pay the Australian GST on services we use from Australian companies?

eg. I use an Australian company for my web hosting, but I am a full time resident of NZ.

Does anyone know how this works?

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rscole86

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#422232 28-Dec-2010 21:26

My understanding is that they have to charge you GST as the service they provide is in Australia. Ie, I am assuming the data centre is in Australia. It may be different if they exporting or hosting overseas.
It would be your responsibility to try to claim it back.

However, I am not the ATO, and I suggest you contact them as they will be able to tell you.

freitasm

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Geekzone

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#422233 28-Dec-2010 21:27

We shouldn't be charged GST... However, I don't see GST free charges in most services with automated billing, they all assume AU residency. It doesn't bother me, the only thing we buy is a VoIP account, which is really cheap.

EDIT: rscole may be right too, as the services are provided there, not overseas.

richms

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#422243 28-Dec-2010 21:49

Tax laws are way behind what you are doing there.

Hope they dont update it because it will only get worse, not simpler if they want you to charge NZ gst for something sold in AU over the internet to a NZ customer, and how much of it was exported vs stayed in AU when its hosting etc.

Richard rich.ms

nigelj

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#422261 28-Dec-2010 22:28

Far from an expert on the matter, but the way that it was taught to me was:

Goods and Services Taxes applies to any goods or services rendered to residents of the same locale.

Hence was Amazon and other websites in the past managed to dodge charging sales tax a lot (sell as Amazon New York to an LA Resident).

Shops etc, always(?) apply GST to in store purchases, exception, is duty free style shops (like Camera & Camera (or was it Camera House?) in Auckland City) or GST rebate claims at the airport for international travelers.

Of course, it doesn't stop NZ Customs slapping me w/ import duty when I buy a $2000 item from USA/Australia GST/VAT/etc free, which can equate to a lot more than NZ GST.

Last time I brought a physical item from an Australian online store (DVD I couldn't source locally) they didn't charge Australian GST so it should still be the same.

(Note, it gets really complicated when you have an invoice that includes locally rendered services, GST exempt items (such as shipping/courier charges) and then internationally rendered services such as from a moving company)

webwat

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#422293 29-Dec-2010 00:21

If the service is provided in Aussie then they would be pretty keen on charging you GST at the point of origin. If the hosting service is exported then you pretty much need export documentation and pay the GST in the importing country. IRD here said they won't let you claim GST at the airport anymore either, it has to be shipped directly by the seller. I guess that means your hosting provider has to argue the case with Aussie tax department, and claim that hosting was done somewhere else.

Time to find a new industry!

nigelj

856 posts

Ultimate Geek

#422296 29-Dec-2010 00:45

webwat: If the service is provided in Aussie then they would be pretty keen on charging you GST at the point of origin. If the hosting service is exported then you pretty much need export documentation and pay the GST in the importing country. IRD here said they won't let you claim GST at the airport anymore either, it has to be shipped directly by the seller. I guess that means your hosting provider has to argue the case with Aussie tax department, and claim that hosting was done somewhere else.

Ahhh just noticed the bit on the IRD site "There is no refund of GST available when you leave New Zealand.", a pity I guess.

However as far as Australian Hosting goes, the situtation sounds like this:

Australian Business, selling an Australian Service, to a New Zealand Tax Resident, living in New Zealand.

The ATO site is quite confusing, but I did find this which uses an example of a domain name, & reading the legislation, it sounds like what the IRD say.

The only real way to find out is ask the company if the GST charges are right, and if they give a wish-washy answer, insist they check w/ the ATO (or ask the ATO yourself if it's a matter of a lot of money).

[Mod (N8): Fixed up really long link]