What is GST?
GST is the abbreviation of Goods and Services Tax which is a value-added tax levied at a rate of 10% on most goods and services bought and sold for use or consumption in Australia. It is generally due when goods and/or services are sold. It is a consumption tax because it is borne ultimately by the final consumer.
Who has to pay GST?
Generally, GST is payable by the supplier who is selling goods or services to its customers. The GST is invoiced by the supplier and collected from the customer, and subsequently, the supplier remits the collected GST to the government.
(Note: GST will generally not be charged on inbound supplies of intangibles (such as services and rights) to Australian business customers (B2B) that are registered for Australian GST. However, these customers might be required to self-account for Australian GST under a "reverse charge rule" where the customer would not otherwise be entitled to claim a full input tax credit (had GST been charged on the supply). In these circumstances, the customer reports Australian GST in its GST return and will need to assess its entitlement to claim any portion of the GST as input tax credit.)
Where does GST apply?
GST generally applies to all transactions for consumption in Australia.
What is an ABN number?
An ABN, or Australian Business Number, is a unique 11-digit number that identifies a customer that conducts business in Australia to the government and community. When Zoom collects the ABN and a declaration from the customer that it is registered for GST, the Australian Taxation Office (ATO) will usually treat the sale as business-to-business and, therefore, not subject to GST. Zoom will use available resources to verify the ABN provided. However, if the information provided is found to be incorrect, Zoom reserves the right to charge and collect an additional amount in respect of GST related to the transactions.
Does Zoom have an ABN number?
Zoom has applied for a simplified GST registration and has received an ATO Reference Number (ARN).
What is the difference between an ABN and ARN number?
An ABN is issued to businesses that are resident in Australia. An ARN is issued to a non-resident business that has a requirement to report Australian GST as it makes supplies of services/ grants rights to Australian residents who are not registered for GST. An ARN is a unique identifier that indicates the non-resident business is registered for Australian GST under a “simplified GST registration”. Also, ABN is 11 numeric digits and ARN consists of 12 numeric digits.
How do I enter my ABN?
If you are registered for GST, to enter the ABN, please follow these steps:
- Sign in to the Zoom Portal
- Under Account Management, choose the Billing page
- Under Billing Contact, choose to enter the ABN number (which appears after the Sold To Contact Address field)
- Enter your ABN and save
How is Zoom determining which customers GST applies to?
Zoom will apply GST if the location of the “Sold To” contact address entered by the Customer is in Australia (unless the customer is registered for GST and provides a valid ABN).
Will GST apply if an Australian company purchases Zoom for use in a location outside of Australia?
If the “Sold To” address is in a location outside of Australia, even if the billing address is in Australia, GST will not be assessed on the basis that the Zoom product will be for “use” outside of Australia. GST will generally only be applicable if the “Sold To” address is located in Australia.
Why does my GST number appear under Billing Contact if application of GST is based on Sold To location?
Usually, the Billing Contact and Sold To location are the same. Customers are first asked to enter a Billing Contact location, which serves as the Sold To location, as well (unless specifically noted as different). The ABN is requested if this location is in Australia and the Customers will be required to enter an ABN if they are registered for GST.
The locations are only different if the Customer specifically indicates that the Sold to location is different, and then enters a second location address. If the Billing Contact and Sold To contact are in different locations, GST will apply if the “Sold To” location is in Australia (unless the Customer provides an ABN).
Why did I get a notification email if I am not located in Australia?
In order to ensure complete and thorough notification to any of our customers who may be impacted, we sent the notification communication to all customers who had a “Bill To” OR “Sold To” address in Australia. If you are not responsible for a “Sold To” address in Australia, you may disregard the communication. We will only collect an ABN from customers that have a “Bill To” address in Australia and will charge and collect GST if the “Sold To” contact address is in Australia.
Is there a minimum threshold purchase amount before GST is applied?
No. GST applies to sale of all Zoom’s services in case the customer is not registered for GST and/or no valid ABN is provided.
What exemptions are available and how does a customer notify Zoom?
Customers who provide a valid ABN (where they are registered for GST) will not be charged GST by Zoom. There are generally no exemptions that are available to Australian residents who are not registered for GST and/or do not provide a valid ABN, unless the supply is for consumption outside of Australia (that is, the “sold to” location is outside of Australia).
Are there any special exemptions applicable for charities under which GST may not be charged?
The rules apply in the same manner to Charities as ordinary businesses. Charities will not be charged GST only if they are registered for GST and provide a valid ABN.
Are there any GST obligations for me as a customer?
If you have provided a valid ABN, no GST will be charged to you. However, in this case, you will need to assess whether you are required to self-assess GST under the “reverse charge rule” (which depends on the nature of your activities and whether you would otherwise have been entitled to claim a full input tax credit had GST been charged by Zoom). You will need to assess whether you are entitled to claim any part of the reported GST as input tax credit in the same GST return.
What if I have an ABN and forget to enter it?
The ABN can be entered at any time. If entered before the next invoice, Zoom will not charge GST. If no ABN is entered at the time of the next invoice, GST will be charged. A customer can contact Zoom directly to request an updated invoice.