Amy's International tax

    The "Export Service" Problem: Field services performed by an Australian entity in a foreign country (PNG) for a foreign resident (the PNG Buyer) are almost certainly GST-free (zero-rated) as an "export service" under Australian GST law. They are not a "Taxable Supply."  A single service cannot typically be subject to both PNG GST and Australian GST.    * PNG GST applies because the services are performed in PNG.    * AU GST applies only if the service is a "Taxable Supply" under Australian law. The parties agree the Price payable under this Agreement is exclusive of GST. : This is a standard and well-drafted "gross-up" clause. It is protective for the Seller, ensuring that any GST liability is an additional cost to the Buyer and does not eat into the Seller's margin. This clause is good for the Seller.

 It is  required to change your current billing model for this transaction. The current flow China entity (Trainer cost) -> US entity (Enterpreneur)  -> SG entity (invoicing entity to the customer) is not compliant because it doesn't reflect the economic substance of the transaction. 1. The Core Principle: "Arm's Length" & Economic Substance The China tax authority's response is based on a fundamental global tax principle: Transfer Pricing  Economic Substance: The entity performing the service (China) must charge a fair, market-based price ("arm's length") to the entity that is benefiting from that service (SG which holds the contract with the end customer) China entity is performing work in China, so it must earn a taxable profit in China for that work. The Problem:   flow (Beijing -> the US) breaks this link. China entity is doing work for SG, but billing a third party (US entity). The tax authori...

  vat-and-digital-services-in-africa-v2.pdf In theory, the US entity would be required to VAT register and pay 19.25% VAT in Cameroon where digital services are provided to Cameroonian customers (both B2C and B2B), as there is no registration threshold.  However, assuming customer is a locally VAT registered business, they will be required to apply the reverse charge.