GST Question
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We are an Australian consolidated group registered for GST with a subsidiary company in NZ. An IT firm (Australian Entity) did some work for our NZn business, and have charged out Head Company for the work but with no GST. Is this correct or should they charge us GST?n
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Answern
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It is suggested that the firm takes the view while it is highly likely that the provision of the service is “in connection with Australia” that the servicesn were exported refer to section 38-190 of the GST Act and GST ruling 2000/31.
The supply of a service may be GST free where the requirements in item 1,2,3 or 5 in the table in subsection 38-190(1) are satisfied.n
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Billing the head company may be a simple oversight or merely a means of ensuring the firm gets paid for its services.n
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