Australia: Draft GST ruling on intangibles.
The Australian Taxation Office (ATO) has published draft Goods and Services Tax Ruling (GSTR) 2019/D2 on the supply of anything other than goods or real property connected with the indirect tax zone (Australia)
When issued, it is proposed to apply both before and after its date of issue and will replace GSTR 2000/31 Goods and services tax: supplies connected with Australia.
This draft discusses when a supply of anything other than goods or real property (an intangible) is connected with the indirect tax zone under paragraphs 9-25(5)(a), (b) and (c) and Division 85 of A New Tax System (Goods and Services Tax) Act 1999.
For a supplier to be liable for goods and services tax (GST) on a taxable supply, one of the requirements is that the supply must be connected with the indirect tax zone.
This Ruling also explains exclusions to the ‘connected with Australia’ rules, where some supplies of intangibles made by non-residents are treated as being not connected with Australia. These supplies are referred to in this Ruling as ‘disconnected’ supplies.