Australia – Taxation of digital services provided by foreign companies

SONY DSCOn 9 April 2015, the Australian Treasurer announced that the government will be introducing new GST measures aimed at overseas companies supplying digital services into Australia. The Treasurer stated that “a company providing intangible services into Australia, such as media services or so on, wherever they are located they should charge GST on those services.”

We have no specific details yet as to the proposed changes, however, they are widely anticipated to be announced in the May 2015 Budget (on 12 May 2015).

Preliminary issues for consideration include how broad the interpretation of ‘intangible services’ will be, what the proxy will be for consumption in Australia, whether the changes will impact B2C transactions only (or also B2B), the date of effect of the changes and whether there will be a registration threshold under which overseas entities will not be required to remit any GST on these types of supplies.

For a deeper understanding, please contact our college PwC Australia Suzi Russell-Gilford ( and Brady Dever (


Bildquelle: / Martin Jäger


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