Intercompany GST: Basics

Several related companies can apply to be treated as a single body (taxpayer) for GST purposes and nominate one of them as the representative member responsible for lodging GST returns (Division 48 of GST Act 1999). Once approved, these related companies may ignore the GST consequences for supplies & acquisitions made wholly within the group.

Conversely, therefore, GST will generally need to be charged between two or more companies if they are not members of the same GST group.

Requirements for application for becoming members of a GST group are that each member of these companies must:
1. be GST-registered
2. all have the same tax periods & accounting basis
3. satisfy Ownership Test i.e. each member must have at least 90% stake in the other OR if a 3rd company has a minimum 90% stake in the other two (s.190-1)

* Emil Jayaputra *

Reference: Australian Master Tax Guide 44th Edition 2009 - CCH [34-180]


From another source...

« INTERCOMPANY & BRANCH TRANSACTIONS »

Does GST apply to intercompany charges between branches or associates companies?

Yes, unless all inter-companies' branches are registered as a group.

If company A receives an invoice for license fees from an overseas associated company and then has to on-charge other branches and intercompanies. Does company A charge company B, C or D GST on their portion of the Fees?

No, GST from overseas company to A.

Yes, GST applicable from A to B, C, D unless grouped.

« EXPORTS »

If your client is an overseas company, do you have to charge the GST as exports are GST free?

e.g. Company X from the USA writes a questionnaire and commissions field work in Australia and the data is sent back to the USA.

Section 38-190
If service carried out in Australia for overseas client and the information is to be used overseas then no GST is payable.
However if the research were to be used for a marketing product in Australia then it would be subject to GST.


Source: Australian Market Research Society website