Ask Me Anything! on GST

Mr GST is in! Tackle some common questions about GST in this interactive ‘office hours’ format, with questions taken from attendees live.

In this session, we cover:

• How does GST work on digital products like Netflix?

• How should GST be applied to overseas transactions, such as those with companies like Google, ChatGPT, and Facebook, especially when it's unclear whether GST should be charged? What should businesses do when they don't have access to client accounts to check if an ABN is listed?

• If client run a business by subleasing multiple apartments and rent it out as short-term accommodation, since the turnover is more than $75k , then the entity is GST registered. But does the entity must charge GST to the consumer who make the bookings?

• An insurance payout on a vehicle that was written off, the insurance company withheld GST on the payout (so vehicle value $44K for example, they paid $40K). How is the $4K GST being handled in this scenario by the insurance company and how should the business handle it?

• Can you explain the passing off (Div 142) concept in GST in the context of the case WYPF please? The tribunal said that because it was priced to market under the margin scheme, there was no passing off. It appears to me that where there are calculation errors as opposed to pricing changes under the margin scheme, there is no denial of GST refund from the ATO.

• My client provides training to NDIS service provider. He did not charge GST in his invoice. When I asked, he told that if he charges GST on that invoice, the plan manager won't pay for his invoice. I believe that he should charge for GST. Can you please explain the treatment?

• A Not-for-profit organisation has invoiced another Not-for-profit (both registered for GST) for a vehicle reimbursement amount. The amount was the exact km’s travelled, and at the ATO rate. Should GST be charged on this?

• My client has a grocery business, and he told that out of his total sales, only 10% are GST inclusive. However, he does not have a proper record for that. How do we tackle this issue ?

• Please explain how GST is applied on compounding pharmacy services?

• Client is a subcontractor for an American Company and has received the income in a US Bank Account. The client has been an Australian resident for years. He has revenue about $150K. Is he subject to GST even though the income is tax exempt?

• What are the circumstances where Export Sales or Import Purchases attract GST in Australia? Also, please explain how GST is applied in the context of Drop Shipping Model.

• I have a professional that is a resident in Australia who consults for a large organisation in USA (which also sells their products to Australia and other countries). His work focuses solely on the security of the devices rather than the devices themselves. Would he need to charge GST on this income? Note: He consults on security of devices and recommends improvements only

  Date recorded: 19 November 2024