This Draft Determination says supplies of interconnection services (eg IDD calls, video conferencing, toll-free calling, 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 Draft says even if the requirements of item 2 are met, a supply of interconnection services will not be GST-free where the supply is provided to another entity in Australia.
[LTN 108, 6/6]