Australian affiliates and GST implications

An "Australian affiliate" in this context is someone (or a business, or a company) who promotes a website in exchange for reimbursement in real dollars, AND is being paid into an Australian bank account AND has an Australian address.

In a nutshell: before GMBill.com can pay you out, you need to provide us with your ABN (pretty much required), and let us know if you are registered for GST or not (optional). Please reply to this email if you have any queries, or with your ABN and four digit GMB Affiliate ID.

Thanks.



As the client website that "makes the sales", and the affiliate who provides the service, are both Australian entities for tax purposes, there are GST implications.

These are between the affiliate and the client, as GMB is merely gathering funds from end users, and re-distributing them to the appropriate parties (client and affiliates). However, as GMB are dealing with both parties regularly, and we have the information handy, we can help both parties out by ensuring the right documentation gets to the right people.

Australian affiliates need to negotiate a rate with the client website for sales, as happens anyway. This must include GST. If it does not, GMB cannot add it on later, and the webmaster will require the affiliate to bill the webmaster for the GST portion separately, which is a lot more paperwork than anyone wants to deal with.

Australian affiliates need to advise GMB and the client website of their ABN. If the affiliate does not provide an ABN, GMB will withhold 48.5% of funds owing (per ATO regs), and pass that to the client to pass to the ATO. This is not recommended nor desirable, but is the only option if the affiliate does not provide an ABN. Obtaining an ABN is a simple process online at www.abr.gov.au. It takes about 20 minutes to fill out the form, and you will be issued an ABN on the spot.

GMB will create a document on behalf of Australian affiliates each payout period called a "recipient created tax invoice", which shows that the affiliate has billed the client for $nAUD (including GST). In a "normal" transaction, the vendor (affiliate) would provide the customer (GMB client) with this tax invoice, as we experience in day to day life in Australia. As the affiliate is not going to know ahead of time what the amounts will be (they are finalised at the time of payout), GMB can make this document and send it to the client for their records.

Until affiliates have advised GMB either way (provided ABN, or chosen to let GMB withhold 48.5%), payouts to Australian affiliates cannot be made. We can hold the money indefinitely for you, until you advise us of your ABN status, so there is no urgency to get this resolved (unless you want your money!).