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Old 07-25-2001, 08:48 AM   #31

Join Date: Aug 1999
Location: Gold Coast, Queensland, Australia
Posts: 9,507

"When you receive an affiliate commission from an Australian entity the commission will be subject to GST. In practice for you it will most likely be impractical to request that you be paid an additional 10% to cover this GST liability.

"The cost of GST payable on such commissions is 1/11 of the consideration received."
Phil and Jan, the above doesn't mean that you need to pay GST where an Australian consumer purchased a product through one of your affiliate links. Rather, it means that where the affiliate program itself is managed by an Australian entity (such as Engage Australia, DStore or WishList), from whom you collect GST as part of your earnings, you must take account of this when filing your BAS (presuming that you are registered for GST). You can't pay GST to the ATO unless you've collected it first, after all.

When managing your own affiliate program, things will become more complicated (that's where Phil's nightmare scenario comes into play). While you're operating through a third-party who handles all of the transactions, and sends you a commission check, you are not providing a supply direct to the Aussie consumer, and thus are not liable to pay GST for that.

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