Australia GST indirect tax FAQs
Updated 05 June 2017
Australian GST – On 01 July 2017, Pearson VUE will collect Australian GST on business to consumer (B2C) sales made to candidates sitting tests in Australia.
The following services are impacted:
- Candidates who schedule exams or make other purchases through the Pearson VUE Testing System on or after 01 July 2017 will be charged 10% Australian GST.
- Exam vouchers sold to candidates or a business that is not a registered taxpayer in Australia on or after 01 July 2017 will be charged 10% Australian GST. Sales that are made to businesses that are registered taxpayers in Australia are not subject to GST (e.g. B2B sales).
Australia has introduced a new law applying the Australian Goods and Services Tax (GST) to international sales of services and digital products provided to Australian consumers. This means overseas businesses such as NCS Pearson Inc will be required to charge GST on these sales from 1 July 2017.
Reverse charge provisions will apply if Pearson VUE has a valid GST registration number on file from your Pearson VUE testing centre. Examples of these types of transactions are typically voucher sales or credit card registrations if made at your centre and the form of payment is your business’ credit card. In these cases, VUE will not collect GST on the transaction but will track and report these sales to tax authorities as required by tax authorities.
Pearson VUE is not an established business in Australia. B2B sales by non-established businesses to established businesses in Australia are not subject to local GST and as a result reverse charges are applicable and GST needs to be accounted for by the recipient.
Voucher Store Customers
Please send an email to the Pearson VUE Voucher Store with your company name and proof of exemption. Pearson VUE will confirm once the system has been configured for your company to be exempt.
NOTE: Any orders placed prior to your company being marked as exempt will be subject to GST.
Test Center Administrators
There are no changes to the test center statement.
When a candidate registers with Pearson VUE’s contact centre or Pearson VUE’s website, Pearson VUE emails the candidate a payment confirmation.
When the candidate registers for an exam with the Test Center AND VUE Credit Terms are used as the payment method, Pearson VUE does not send the candidate a payment receipt. Instead, the test center administrator should do this.
When the candidate registers for an exam with the Test Center AND a credit card is used Pearson VUE emails the candidate a payment confirmation. If the payment was made using a Test Center business credit card, please make sure that the Billing Information is correct on the order payment screen. The default can be to the candidates address, but can be changed as needed.