If you operate an EDP, you must report details about payments made to sellers for supplies made through their EDP that are connected with Australia, including:
- ride-sourcing
- short-term accommodation
- hiring (not selling) of assets.
Transactions that are excluded and not reportable under the SERR are:
- the sale of goods or real property (that is, where the ownership changes)
- financial supplies
- transactions between members of the same income tax consolidated group or multiple entry consolidated group.
For more information, see Law Companion Ruling LCR 2018/2 GST on supplies made through electronic distribution platforms (paragraphs 19 to 47).
Example: a booking service only
Erica uses Taxi Booking Co's mobile application to book a taxi. To make the booking, Erica provides:
- her name
- the address that she wants to be picked up from
- the date and time at which the taxi is to pick her up.
Erica doesn't input any information about her intended destination. Taxi Booking Co arranges for a taxi driver to collect Erica. Payment for the fare is not made through the app and must be made directly to the taxi driver at the end of the trip.
Taxi Booking Co has no way of knowing whether the taxi driver ever actually made the supply of taxi travel or what the value of service would have been and is not required to report this transaction under the SERR.
End of exampleTypes of supply that must be reported
A supply is made through an EDP if payment and any related discussions, negotiations or other activities are carried out on the platform. For example, if the EDP has a 'click to chat' option or call centre that a buyer uses to make enquiries before purchasing via an online checkout, the supply will still be made through the EDP.
From 1 July 2024, EDPs must report transactions related to the supply of:
- taxi travel and ride-sourcing
- accommodation
- hiring assets, including personal assets such as caravans, clothing, car storage or shared business space
- services including food delivery, professional services, digital services or performing tasks
- intangible assets, such as eBooks, apps or games, software, videos or podcasts
- tips and gratuities (regardless of how they are described including as a gift or donation) given through the EDP in connection with a supply made through the platform.
EDP operators don't need to report details of all supplies made through their EDP. Transactions for supplies that don't need to be reported include:
- where an amount of the payment for the supply must be withheld under Division 12 in Schedule 1 to the Tax Administration Act 1953, for example, for salary and wages
- where the operator and seller are members of the same tax consolidated or multiple entry consolidated group
- the transfer of the title or ownership of goods or real property
- financial supplies, such as financial securities trading
- the sale of vouchers, such as a gift cards, with a specified monetary value that can be redeemed for goods or services
- supplies where the EDP operator is also the supplier (that is, the supplier is not a third party)
- those completed, including payment being made to the supplier, before the SERR started for that type of supply.
Example: tips and gratuities
Lauren is a content creator. Fans of Lauren can pay a fee to Lauren through the Content4Fans platform to access exclusive content which is delivered through the platform.
Some fans also make an additional voluntary payment through that platform to thank Lauren for the content (tips). This may be in the form of either money or a digital token that Lauren can redeem for money or other goods or services.
Because the voluntary payments (tips) are given in connection with a supply made through the Content4Fans platform, the operator of Content4Fans needs to include the amount of these tips paid to Lauren in its report in addition to the fee paid to Lauren for access to the content.
End of exampleSupplies that are connected with Australia
Only supplies connected with Australia are reportable under the SERR. A supply is connected with Australia if the:
- service or digital good is provided to an end user in Australia
- seller makes the sale through a business they carry on in Australia
- sale is of a right or option to purchase something that would be connected with Australia
- supply is of real property, such as a supply of short-term accommodation, located in Australia
- The residency of the supplier doesn't affect whether the supply is connected with Australia. The supplier doesn't have to be in Australia for their supplies to be connected with Australia.
Examples of supplies that are connected with Australia include:
- hiring an asset that is located in Australia, such as a car
- providing accommodation that is located in Australia, but not accommodation located outside Australia
- food delivery service in Australia
- a podcast recorded by a person with an address within Australia.
For more information, see Goods and Services Tax Ruling GSTR 2019/1 Goods and services tax: supply of anything other than goods or real property connected with the indirect tax zone (Australia).
Example: connected with Australia (including the external territories)
Short Stay Marketplace Co is an EDP through which entities can make supplies of short-term accommodation.
Using this platform, Ezra contracts with Nina to book a 3-night stay at a property owned by Nina in Melbourne for $450.
Short Stay Marketplace Co must report this transaction. It involves a supply that is made through the platform that is both for payment and connected with Australia.
The supply of the short-term accommodation is connected with Australia because the property is located in Australia.
If the property was located in Italy, Short Stay Marketplace Co would not need to report that transaction as it is for the supply of the accommodation not connected with Australia.
End of exampleShort-term accommodation services via agents or channel managers
If a person acting as an agent for a property owner uses an EDP to supply short-term accommodation services on behalf of the property owner, they are the supplier. The EDP is required to include the agent's details in its SERR report.
When the agent uses software, known as channel management software, to list properties on one or more EDP, the entity that licenses the channel manager software doesn't have a reporting obligation.