The Australian Taxation Office (ATO) opened a public consultation on the draft GST ruling. The purpose of the ruling is to guide the GST treatment of cross-border supplies made to Australian consumers. More specifically, the guidance explains how Australia’s GST rules apply to non-resident businesses that supply services, digital products, or rights to local consumers.

Key GST Rules From the Draft Ruling

The ruling's primary focus is on how suppliers determine whether a customer qualifies as an Australian consumer. To support this, the ATO has introduced safeguard rules protecting suppliers who reasonably rely on evidence that a customer is not an Australian consumer. The ruling specifies what evidence foreign suppliers should collect and retain, along with practical steps for verifying customer status.

Notably, the ruling clarifies that even if a supply is not made to an Australian consumer, the supplier must still check whether the supply is connected with Australia under other GST rules. An example of such a situation is when the service is performed in Australia or supplied through a business operation carried on in Australia. 

In some cases, the ATO notes, it may be simpler to first determine whether the supply is GST-free. If it is, and if the supply is not made through an enterprise carried on in Australia, no further assessment of Australian connection is required.

The ATO invited all stakeholders to submit comments on the draft ruling before it is finalized, including feedback on when the ruling should take effect. Interested parties are asked to send their comments to the designated contact officer by 24 July 2026. 

The feedback is specifically sought on two specific areas: on the additional guidance on the “consumer element,” that is, how to determine whether a recipient qualifies as an Australian consumer for GST purposes, and on the practical compliance approaches in Appendix 1, which outlines methods non-resident suppliers may use to verify customer status and meet their GST obligations.

Conclusion

By publishing the draft ruling and inviting targeted feedback, the ATO has demonstrated a strategic and transparent approach to clarifying GST obligations for foreign suppliers. The ATO will compile submitted comments into a compendium during the finalization process and publish a revised version with names and identifying details removed. Respondents who prefer their comments not be published in the compendium should contact the designated officer to request exclusion.