Do they attract GST?
Scenario:
Our company is an Australian company, which is owned by Australian shareholders and UK shareholders equally. The UK shareholders carry on a similar business in the UK under the same brand name as we have in Australia. The Australian company has engaged in providing advertisement designing services as a digital marketing agency. We have charged the UK company for some of the designing costs.
My question is, for the fees charged to the UK firm, do they attract GST?
Explanation:
The fees would be regarded as the work done by the UK company while the Australian company acting as a conduit. The Australian company was acting as an agent and the service was provided to the UK company, which would be a GST-free supply (item 2 of the table in GST Act s 38-190(1)). Therefore, it would not be subject to GST.