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  1. #1
    Animal Lover
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    January 18th, 2005
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    australian affiliates and GST
    Out of interest - do you guys pay GST on your affiliate income (which I assume comes mainly from US/UK merchants)? My accountant seems to think that I do because the services are 'provided' in Oz (ie I maintain the sites) - and I have been doing so but I just wanted to know whether you guys do or not?

    Oscar
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  2. #2
    Newbie CodeRed's Avatar
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    May 30th, 2007
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    Hi Oscar

    I go about it this way as a Australian Merchant. If an Affiliate earns AUD $100 and is located in Australia then the AUD $100 is GST inclusive. Its up to the affiliate to do the right thing and declare it.

    If I was based outside Australia, say the UK and paid a commission to a affiliate in Australia, then its GST FREE.

    I am fairly sure at the end of the day commissions remain the same and you just need to adjust your tax returns reflecting where the payment has come from.

    Australia / Australia > commission > GST included in payment.
    World / Australia > commission > GST > no GST to pay.

    Cheers

  3. #3
    Animal Lover
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    Yeah I thought it was that way - but needed clarification. I tried explaining it to my accountant and he was really vague about it. Thus far I have been paying GST for ALL my income (the bulk of which should've been GST free) - so now I need to get back to him and tell him (I did some research after the new GST laws came out and that's why I was questioning it) - that from what I have read it would be GST free so what would I need to do now to claim back those years of GST that I have paid for in the past.

    thanks
    Oscar
    My DataFeed Scripts - php datafeed scripts for your site
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  4. #4
    Newbie CodeRed's Avatar
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    May 30th, 2007
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    Hi Oscar

    I think and I am really just guessing, if they can review your income and and decide you have not paid enough taxes, then they fine you and hit you with a bill.

    So the reverse should be possible. But I bet you will need to prove it with paper work.
    to place a claim in. If you have nothing to hid go for it, If you do, well leave it alone.

    The hard part is explaining it to your accountant so he understands how you earn an income. A call to the ATO Business line 132866 or Personal line 132861 will answer your question. They will ask for a ABN number, but you do not need to supply one for a general enquiry. So hang on the phone till you are patched through to a operator.
    You don't even have to give them your name.

    Just ask them is it possible to reclaim past GST payments that you mistakenly over Paid. If the answer is YES, I guess they will tell you that you need to get your accountant to submit a request for the amount only and proof or re-submit your tax returns.

    Keeping in mind that if you earn less than 50K a year you don't collect GST, but you still pay it when purchasing (LOL). Nice one hey.

    Buy a big pack of panadol, you will need it. Also if using an accountant get a quote on the work. My accountant charges $275 per quarter return. But your situation is different. It could cost you more than you lost.

    Cheers

  5. #5
    Animal Lover
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    January 18th, 2005
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    Hi CodeRed

    I do fall into that 50K plus range so I asked the accountant. Well...turns out now they think that I didn't need to in the first place...so they tell me I should now go back and re-work ALL my BAS when I first registered as a business and then work out the income again...great...that's all I need...all this because the person they referred me to wasn't a tax specialist (who has since left their firm)...I specifically told him how the whole thing worked and still he thought that because I supplied the services here in Oz that I wasn't exempt...anyway, now that I've questioned their decision about it, they've referred me to their tax specialist who now informs me that I probably didn't need to from the word go...all that effort...now I have to go back and recalculate everything again - gets me mad these accountants. And what makes me madder is that had I not questioned it (I only did because they've changed the legislation lately and I've read bits of it in the mail I got from the tax office) I would've just kept paying GST.

    Getting a refund from the tax office is painful - they're usually all too happy to take money from you but refunds always seem to take forever.

    O well...back to my accounts.

    thanks for the insight,
    Oscar
    My DataFeed Scripts - php datafeed scripts for your site
    Shareasale datafeed scripts - to display Shareasale datafeeds
    Linkshare datafeed scripts - for multiple Linkshare merchants

  6. #6
    Newbie CodeRed's Avatar
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    May 30th, 2007
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    Its sad you get better advice from a forum then a CPA.

    Remember the Panadol I mentioned, did ya stock up.

    Guess no-one will see you for awhile.

    Good luck

    PS: If you don't have it get MYOB

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