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UK based company selling to Australia

Hi all

I have a client who is a Ltd Company incorporated and based in the UK.  They sell advertising on the internet, a bit like yell.com.  They have self employed people around the world who sell the advertising in their respective countries and then receive a comission for their efforts.  They are about to appoint someone in Australia but the guy they are looking to use there has told them that they need an Australian Business Number (ABN) before they can start.  Does anyone know if this is correct?  To clarify, my client is not looking to open an office or base themselves in Australia, they are merely selling advertising to Australian based businesses through a self employed agent.

Thanks in advance,

Mark

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Appointing an Agent

If your client is not establishing a branch or representative office in Australia, then I cannot see how the ABN is required - it is the selling agent (in Australia) who needs one in his own name/Trading style.   However this probably means that all sales contracts should be signed off by your client - not the sales agent - who simply introduces prospects (and earns a commission on successful ones).   The moment your client establishes a "place of business" (in whatever form) in another country they will be subject to the same local rules (ABN, GST/VAT Accounts submission, local Corporation tax etc. etc.) as any other entity operating within that country.

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