The Tax Office on Wed 28.11.2012, issued the following GST Determinations concerning the GST treatment of specific telecommunication supplies. The Determinations were previously issued as Draft GST Determinations GSTD 2012/D1 to D4, respectively.
Interconnection services to non-resident – GSTD 2012/7
The Determination says supplies of interconnection services (eg IDD calls, video conferencing, toll-free calling, mobile satellite calls, reverse charge calls) made by an Australian resident telecommunication supplier to a non-resident are GST-free under item 2 in the table in s 38-190(1) of the GST Act, if the non-resident is not in Australia when the thing supplied is done, and:
- the supply is neither a supply of work physically performed on goods situated in Australia when the work is done nor a supply directly connected with real property situated in Australia; or
- the non-resident acquires the thing in carrying on the non-resident’s enterprise, but is not registered or required to be registered.
However, the Determination notes the application of item 2 is limited by s 38-190(3), which prevents a supply of interconnection services covered by item 2 from being GST-free where the supply is provided to another entity in Australia.
Global roaming outside Australia – GSTD 2012/8
According to this Determination, telecommunication supplies made under arrangements for global roaming outside Australia by an Australian resident telecommunication supplier are GST-free under item 3 in the table in s 38-190(1) of the GST Act when:
- the supply is made to the subscriber who is not in Australia when the thing supplied is done; and
- the effective use or enjoyment of the supply by the subscriber takes place outside Australia.
Rights re international telecommunication network – GSTD 2012/9
This Determination provides that a supply of capacity in an international telecommunication network made by an Australian resident telecommunication supplier is a supply in relation to rights which is GST-free under item 4 in the table in s 38-190(1) of the GST Act provided that:
- the rights are for use outside Australia; or
- the supply is to an entity that is not an Australian resident and is outside Australia when the thing supplied is done.
Global roaming inside Australia – GSTD 2012/10
This Determination states that telecommunication supplies made under arrangements for global roaming in Australia by an Australian resident telecommunication supplier are GST-free when s 38-570(1) and s 38-570(3) of the GST Act are satisfied. Telecommunication supplies can include telephone calls, call back services, e-mail and Internet access, satellite transmissions, etc. In order to be GST-free, these telecommunication supplies must be made to a non-resident telecommunication supplier and provided to enable the user of a portable device that has a subscription to a telecommunication network outside Australia (the subscriber), to roam in Australia.
DATE OF EFFECT: The Determinations apply to years before and after their date of issue.
[LTN 231, 28/11]