Australia GST
IMPORTANT: Information in this communication does not constitute tax, legal, or other professional advice. If you have questions, please contact your tax, legal, or other professional advisor.
What is goods and services tax (GST)?
Under Australian GST rules, WP Engine will calculate and collect GST on sales to Australian customers who do not have an Australian Business Number (ABN) and are not registered for GST. If you are a resident of Australia and have an ABN, please provide WP Engine with your ABN to avoid having GST applied to your invoice.
Why is WP Engine collecting GST on Australian sales?
Effective July 1, 2017, Australia changed its tax legislation to impose goods and services tax (GST) on electronic services sold by non-resident suppliers. Consequently, effective December 1st, 2017, WP Engine will be charging GST on services provided to customers who are not GST registered or who have not provided us with their GST registration information.
Does GST apply to me?
Under Australian GST rules, WP Engine will calculate and collect GST on sales to Australian customers who do not have an Australian Business Number (ABN) and are not registered for GST. These rules only apply to customers who are residents of Australia. Consumers are not typically registered for GST and sales will be subject to GST collection.
How do I obtain an Australian Business Number (ABN) and register for GST?
Businesses must register with the Australian Taxation Office to obtain an ABN and register for GST. Registering for GST may lead to several associated compliance requirements. Refer to Australian Taxation Office’s website for further information.
How do I enter my Australian Business Number (ABN) into the User Portal?
To provide your ABN, from the User Portal click the “Update Contact Info” dropdown caret. Once here, enter your ABN ID in the “VAT/GST ID” field and click Update.
How does WP Engine calculate the GST amount for each sale?
GST is a tax of 10% on most goods, services, and other items sold or consumed in Australia.
Am I required to do anything if I am not a resident of Australia?
If you are not a resident of Australia and do not have an Australian Business Number (ABN) you do not need to provide any information regarding GST. Consult your tax advisor to help you understand if you have GST obligations in Australia.
Will I be retroactively charged for GST?
WP Engine will not be retroactively charging customers GST. GST will be based off of the invoicing date and included on all invoices issued after 12/1/17.
Example 1
If an annual subscription renews and is invoiced on 11/29/17, GST will not be included on that invoice. However, the following annual renewal date of 11/29/18 will include GST if a valid ABN ID is not provided.
Example 2
If an annual renewal date is 5/1/18, the 5/1/18 renewal invoice will include GST for the 5/1/18 – 4/30/19 period and no additional GST will be added for the retroactive period of 12/1/17 – 4/30/18.
