Eric Phuah

Is ad revenue you receive from an app a 'sale' for GST purposes?

I'm completing my GST statement for the first time for my smartphone app business and was wondering, for revenue that I receive for displaying ads based on users duration and them clicking through, is this considered a 'sale' for GST purposes? So do I need to put it down as G1 Total Sales? Also I'm pretty sure, but to confirm, there should be no GST amounts in the revenue I receive?

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2 Answers

Apurv Bhalla CPA

Apurv Bhalla CPA , Accountant at Success Tax Professionals

Hey Eric,

Usually the money you get from outside is export and thus carries no GST. Money received from Australian carries GST. You should proportionating. Exports are GST free. Which also means that if you paid money to overseas guys to develop the app ect is also GST free so you cant claim that. 

 

Eric Phuah

Eric Phuah , Director at Hystericalz Pty Ltd

Hi Apurv, Awesome, thanks for the info, it's helped me out greatly. Thanks for getting back so quickly too!
Hi Apurv, Awesome, thanks for the info, it's helped me out greatly. Thanks for getting back so quickly too!
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Albert Kelly

Albert Kelly , Information Technology at Corporate Gifts Shop

Hey Eric,

Sounds like you are going to be running the full Google international tax savings scheme. Good work.

I do not know if you have it already, but something else to consider is making sure that everything is legally covered with your app.

As a heads up http://technologylawyer.com.au/ has an app privacy policy http://technologylawyer.com.au/app-privacy-policy.

Might be worth looking into just to make sure that you do not get the privacy breach fines that Google is coping at the moment.

 

Eric Phuah

Eric Phuah , Director at Hystericalz Pty Ltd

Thanks for the tip Albert, I'll have a look into it!
Thanks for the tip Albert, I'll have a look into it!
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