We charge 10% GST for user purchasing from Australia
What is GST?
GST, short for Goods and Services Tax, is a tax that is typically applicable when goods and/or services are purchased. It is relevant to most goods and services bought and sold for use or consumption in Australia. GST is considered a consumption tax since the end consumer ultimately pays it.
Who must pay GST?
Typically, the supplier who sells goods or services invoices the GST and collects it from the customer. This collected GST is then reported and remitted to the tax authorities by the supplier.
If you are a business customer, you should provide your Australian Business Number (“ABN”) to Murf Inc. By providing a valid ABN; you can avoid being charged GST on the supplies made to you by Murf Inc. However, if you do not have an ABN, Murf Inc will charge GST on the supplies made to you.
If you have provided your ABN, you might need to take responsibility for accounting for the Australian GST under the "reverse charge rule." This rule is applicable when the customer would not have been eligible to claim a full input tax credit if the GST had been charged on the supply. In such cases, the customer must report the Australian GST in their GST return and evaluate their entitlement to claim any portion of the GST as an input tax credit.
Why am I being charged GST?
As an overseas service provider, Murf Inc. must charge 10% GST on its supply of Electronically Supplied Services (ESS) to Australian customers who are not registered for GST. This type of supply is commonly called a "B2C" supply.
In the case of Electronically Supplied Services (ESS) provided to a customer registered for GST in Australia (known as a "B2B" supply), GST is generally not applicable.
What is an ABN number?
An ABN, also known as an Australian Business Number, is an exclusive 11-digit identifier for customers engaged in business activities in Australia.
When Murf Inc. collects the ABN and a declaration from the customer stating that they are registered for GST, the Australian Taxation Office (ATO) typically recognizes the transaction as a B2B supply, meaning it is not subject to GST.
Murf Inc. will use the resources to verify the provided ABN. However, if the provided information is incorrect, Murf Inc. reserves the right to levy an additional charge to collect the GST amount associated with the transactions.
Does Murf Inc. have an ABN number?
Murf Inc. has a simplified GST registration because it is a non-resident entity business providing ESS to customers in Australia. As a result, Murf Inc. possesses an ATO Reference Number (ARN) and will solely collect GST on B2C supplies to customers in Australia.
Murf Inc. ARN number - 3000 2817 2751
Every customer is unique, and so are their specific tax circumstances. The above-stated information should not be considered tax advice but rather a general overview of relevant tax rules. Murf cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.