/!\ Very much in progress /!\

I hope to write up something a bit more readable than the following dot-points once I've marshalled the facts...

In fact - GSTR 2003/7 paragraph 55 is particularly promising:

  1. A supplier may use goods or real property as inputs in making a supply. However, that use does not make that supply directly connected with the goods or real property used. A direct connection between a supply and goods or real property does not extend to a connection between the supply and the business infrastructure used by the supplier to make that supply. For example, if a supplier supplies and charges an overseas customer for information or software provided electronically via facsimile or Internet, the use of the supplier's infrastructure (for example, facsimile machine or computer) is essential as the means of transmitting the information or software to the customer. However, the supply is not directly connected with the supplier's infrastructure.

Paragraphs 56 through 59 then go on to talk about how if you're not making any physical changes to a physical good then the item is GST-free (so software is in a good light). Paragraph 55 suggests that the use of local infrastructure to provide software or information that is then used exclusively outside of Australia by the client does not matter, so providing software to an international client should be GST free.

BradsWiki: TaxNotes (last edited 2009-01-24 10:45:20 by BradleyDean)