What is GST?
Goods and Services Tax is abbreviated as GST. In general, GST is collected when goods or services are sold.
It applies to most of the goods and services used or consumed in Australia. Because it is ultimately borne by the final consumer, it is a consumption tax.
Who must pay GST?
In general, GST is invoiced by the supplier that sells the goods or services, and GST is collected by the customer. It is then the responsibility of the supplier to report to the tax authorities and remit the collected GST to them.
You will need to provide Zoom with your Australian Business Number (“ABN”) if you are a business customer (see the section below titled “How do I enter my ABN ID?” for details on how to do this). Zoom will not charge you GST for goods and services that are purchased from you if the ABN is valid. It is important to understand that if you do not have an ABN, Zoom will charge GST on all supplies made to you.
The use of your ABN may require you to self-account for Australian GST under the “reverse charge rule”, which applies in the event that you would otherwise not be eligible to claim a full input tax credit from the supplier (had GST been charged on the supply) to the customer. In such circumstances, the customer reports Australian GST in its GST return and must determine its entitlement to claim any portion of the GST as an input tax credit.
Why am I being charged GST?
When a provider of Electronically Supplied Services (ESS) provides services to a customer in Australia who is not registered for GST, they are required to charge GST on those supplies (this is referred to as a “B2C” supply).
ESS are generally not subject to GST if they are provided to a registered customer in Australia (known as a “B2B” supply).
What is an ABN number?
An ABN, or Australian Business Number, is a unique 11-digit number used by governments and the community to identify a company doing business in Australia. The Australian Taxation Office (ATO) will usually consider the sale as a B2B supply and, therefore, not subject to GST if Zoom has collected the ABN and has received a statement from the customer that it is registered for GST. The ABN provided by the customer will be verified by Zoom using available resources. On the other hand, Zoom reserves the right to charge and collect an additional amount in respect of GST related to the transactions if it finds out that the information provided is incorrect.
Does Zoom have an ABN number?
Due to the fact that Zoom is a non-resident entity supplying ESS to Australian customers, it has simplified the GST registration process. Due to this, Zoom has been given an ATO Reference Number (ARN) and will only collect GST on B2C supplies made to Australian customers.
What is the difference between an ABN and ARN number?
Businesses that are resident in Australia will be issued with an ABN. It is an Australian Recognition Number that is issued to a non-resident business that has a requirement to collect and report GST to its account, since it makes supplies of services or grants rights to Australian residents, who are not GST registered.
An Australian ARN is a unique identifier which indicates that the non-resident business has been registered for Australian GST under the simplified GST registration scheme. An ABN is composed of 11 numeric digits, whereas an ARN consists of 12 numeric digits.
How do I enter my ABN?
Upon registering for GST, you will need to enter your ABN by following the steps below:
- Join the Zoom Portal by signing in to your account
- and selecting Billing under the Account Management section.
- You will then be able to make your payments.
- Select “Billing Contact” under the Contact Information heading, and then enter the ABN (found below the Sold To field) as the billing contact.
- Make sure you save the information.
What happens if I do not have an Australian Business Number?
Zoom will charge and collect the Australian GST on its supplies to you if a customer in Australia is unable to provide a valid ABN.
How is Zoom determining which customers GST applies to?
Zoom will charge Australian GST on its supplies to you if you have not provided an ABN and you are a resident of Australia.
In the event that any customer has a ‘Sold To’ address in Australia, Zoom will consider them to be resident in Australia. To verify the accuracy of this information, we need to cross-reference it with other data sources to ensure that the ‘Sold to’ country is correct.
As a customer, it is your responsibility to make sure that the shipping address you provide in your order is accurate.
Will GST apply if an Australian company purchases Zoom for use in a location outside of Australia?
The GST will not be liable in the event that the “Sold To” address is in a country outside of Australia, even if the billing address is in Australia, since the Zoom product will be for “use” outside of Australia. GST is only applicable in most cases if the “Sold To” address is within Australia. This information is subject to cross-referencing with other data to verify the accuracy of the ‘Sold to’ country information.
Why does my ABN appear under Billing Contact if application of GST is based on Sold To location?
Billing Contact and Sold To location are usually the same contact information. Customers are first asked to enter a Billing Contact location, which serves as the Sold To location, as well (unless specifically noted as different).
Customers who are registered for GST will need to enter an ABN if this location is in Australia.
The Customer can specify a different location only if he enters a second address when entering the Sold to address. When the Billing Contact and the Sold To contact are in different places, GST will be charged to the “Sold To” location if the customer does not provide an ABN.
Is there a minimum threshold purchase amount before GST is applied?
No. GST is applicable to all sales of Zoom’s services in Australia, regardless of whether the customer provides Zoom with a valid ABN.
What exemptions are available and how does a customer notify Zoom?
Zoom will not impose a GST charge on customers who provide a valid ABN. Zoom does not offer any other exemptions at the moment.
What are the special tax exemptions that apply to charities under which GST may not be charged to them?
Unless charities provide a valid Australian Business Number (ABN), they are not eligible for special exemptions.
As a customer, am I subject to any additional GST obligations?
We will not charge you any GST if you have provided us with a valid ABN. It is important to note that in this case, you would need to determine whether you are required to self-assess GST under the “reverse charge rule” (which depends on the nature of your activities and whether otherwise you would have been eligible to claim a full input tax credit for GST charged by Zoom). If you want to claim any part of the GST you were charged as input tax credit in the same GST return, you will need to assess whether you are entitled to do so.
What if I have an ABN and forget to enter it?
You are able to enter your ABN at any time. It is important to note that if GST is entered before the next invoice is issued, Zoom will not charge GST on the next invoice or future invoices you receive from Zoom. The GST will be charged until a valid ABN is entered in the next invoice, if no ABN has been entered at the time the invoice is issued.
It should be noted that if a valid ABN has been entered and GST has previously been charged on invoices provided to you, Zoom may refund any GST included on invoices provided to you in the thirty days previous to providing a valid ABN. Invoices that are issued outside of this thirty-day period will not be eligible for GST refunds.
Is there a possibility that I will be charged Australian GST upon purchase?
The tax circumstances of each customer are unique. This information should not be taken as tax advice, but rather as a general overview of relevant tax rules. We strongly recommend that you speak to a tax professional for tailored advice tailored for your individual situation, as Zoom cannot give you tax advice.