Q: Does a taxpayer need to register for GST in Australia if they earn commissions exceeding $75,000 per year? Here are some extra details:
The commissions come from a foreign company based in the US. This company isn't registered for GST in Australia. Some of the commission income is from goods sent directly from overseas to contacts in Australia. Half of these goods come from their distribution center in New South Wales, Australia, and the other half from their center in the US.
A: Yes, if the taxpayer's commissions reach or exceed $75,000 in a year, they must register for GST. Their turnover includes all taxable and GST-free supplies. Based on the information, the commissions are for supplies not connected with Australia's GST system. Therefore, the taxpayer must register for GST. The commissions earned are for supplies that are GST-free, so they don't need to charge GST on them but can claim credits for any GST they paid on related expenses.
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