How does tax representation work in Australia?

International Taxes

How does tax representation work in Australia?

What is tax representation in Australia?

Establishing tax representation in Australia enables goods to be imported and exported using a VAT number called GST in Australia (Goods and Services Tax). Tax representation therefore allows a company to operate for tax purposes like a local company even if it does not possess an entity or permanent establishment in Australia.

What are the benefits of tax representation in Australia?

• it allows companies based abroad to operate fiscally in Australia without having a permanent establishment.
• it gives them the possibility of importing, buying, selling in Australia like a local company without having a permanent establishment there.
• no taxation or payment of duties are imposed in Australia, as corporate tax remains payable in the country of domicile.
Moreover, tax representation also allows the introduction of advance stock in Australia, the establishment of a commercial team through social representation and BtoB or BtoC sales. Consequently, using this solution, you can import goods from ASIA, EUROPE, AFRICA and the UNITED STATES for direct sale in Australia. This solution enables a swift response to local administrative requirements and a minimisation of administrative costs.
Tax representation in Australia also helps to develop new markets and gain a strong local presence.

What types of GST and why?

GST is payable by the buyer based in Australia. Tax representation requires various registrations, notably with the GST management authorities and the customs department. The Standard Rate of GST is 10%; currently there is no reduced rate. It is managed through various customs and/or tax formalities.
The various GST solutions include:
• Simplified GST registration: this solution is implemented for companies that buy their goods directly from Australian companies. Australian companies handle the product export directly.
• Full GST registration: this solution is intended for companies wanting to import and sell their products in Australia.

Caution: the indirect tax system (GST) does not follow the same rules as in Europe and therefore does not use the same simplifications. There are a number of different solutions depending on your business; proper support is needed to manage these different formalities. All documentation will be submitted by the tax representative based in Australia on behalf the fiscally represented company. The tax representative will also be responsible for notifying the authorities of company activities through various declarations, will monitor the tax calculations and can handle the refund request related to the activities of the company represented.
Note: In Australia, in certain cases, it is possible to register retroactively in order to regularise past activities and, depending on the operations conducted, submit tax refund requests (GST) for previous years.

Share on social networks

Find out more about our VAT recovery service

ASD Group, with over 20 years’ experience, has an international presence. We can assist you in the development of both your international activities and in Australia. Please contact us for any further information you may require concerning tax representation in Australia.

Find out more about the author of the article

Charlotte Bienaimé

Charlotte Bienaimé

News

Find all our news on VAT and customs, decrypted by our experts

ASD Group opens the doors to the world ASD Group News

ASD Group opens the doors to the world

This month, Select Antipolis magazine dedicated 8 pages to ASD Group.  Didier Delangue shares the history of the development of ASD Group. From the creation of ASD Group to its(...)

Read more
VAT registration changes in Switzerland International Taxes

VAT registration changes in Switzerland

Until now, a foreign company had the obligation to register for VAT in Switzerland, as soon as its taxable transactions in Switzerland reached 100 000 CHF (approximately 85 000€). From(...)

Read more
The dangers of the VAT fraud International Taxes

The dangers of the VAT fraud

Taxation remains a complex subject within the European Union. According to a study by the European Commission, The European Union member countries lost 151,5 billion euros in 2015, from which(...)

Read more
Update on the flat rate contribution of SIPSI Posting of Workers

Update on the flat rate contribution of SIPSI

Legislation concerning secondment declarations will change in the coming days. Zoom on future changes. WHAT IS THE DETACHMENT DECLARATION (SIPSI)? A foreign company wishing to second(...)

Read more
Strasbourg and its Eurometropolis adopt the Crit'Air sticker from 1st of November 2017 Posting of Workers

Strasbourg and its Eurometropolis adopt the Crit'Air sticker from 1st of November 2017

The affixing of the vignette Crit'Air on the windshield becomes more and more common in France. After Paris, Grenoble, Lyon and Lille, it is Strasbourg and its 33 surrounding municipalities(...)

Read more
This is the list of non-EU countries that do not have to appoint a tax representative International Taxes

This is the list of non-EU countries that do not have to appoint a tax representative

According to the article 289 A of the French General Tax Code, a foreign company that carries out transactions subjected to VAT in France must, in several cases, appoint a tax(...)

Read more
The posted worker turn-around in Europe Posting of Workers

The posted worker turn-around in Europe

After 12 hours of discussions, European Union’s Labour Ministers finally agreed upon the posted workers' reform. REDUCTION of the maximal posting duration European countries(...)

Read more
How to know if I have to file a DEB? Customs Obligations

How to know if I have to file a DEB?

Although companies can make commercial operations within the European Union freely and without a control on the borders, depending on your activity and the amount of trade you might have an(...)

Read more
European taxation of GAFA International Taxes

European taxation of GAFA

a huge subject since some months, the debate on a European taxation of digital multinationals, the « GAFA » (Google, Amazon, Facebook, Apple) aka « equality(...)

Read more
Our experts are at your disposal to answer your questions. Benefit from a free consultation!
Ask us for advice