Non-resident organizations like RecruitiFi do not need to charge GST for any services supplied to Australian resident entities that are themselves registered for GST and are using the services for the purposes of their enterprise.
The Australian Taxation Office has reviewed our terms and business model and has provided the following guidance.
RecruitiFi provides all services as a non-resident organization in Australia, having no physical presence or employees based in Australia.
Non-resident entities are only required to charge GST on services to Australian Consumers (i.e. B2C transactions where the recipient is not registered to pay GST).
As an Employer on RecruitiFi, you are not considered an Australian Consumer because your organization is registered for GST and uses the RecruitiFi-supplied serviced for the purposes of your enterprise.
Thus, the overseas supplied services are not considered "connected with Australia" for tax purposes.
Does it matter where the agency is from?
No. Employers are not directly contracted with any Agencies. Employers are contracted with RecruitiFi and pay RecruitiFi for the services. Even if an Employer and an Agency had a prior relationship, the RecruitiFi Terms supersede their previous contracts for the duration of their engagement on RecruitiFi.
The Agencies are consultants who are contracted with RecruitiFi. Where the agency is located does not factor into the tax situation.
Is there some sort of tax documentation that's required?
In order for RecruitiFi to provide our services GST-free, the ATO requires that we collect the ABN (Australian business number) from all Australian Employers, along with a declaration that the Employer is registered for GST