Sales tax

How are app sales taxed?

Atlassian aims to make your tax on sales experience hassle-free. We handle most calculation, collection, reporting and sales tax payment in relation to Marketplace transactions. We split app sales into two separate transactions:

• Wholesale transaction: In this transaction, as an app developer you act as a wholesaler. This means you sell app license keys to Atlassian Pty Ltd in Australia (Atlassian) for resale. Depending on your establishment location and tax status, this transaction might be subject to tax.
• Resale transaction: Atlassian then resells your apps to end-users via the Atlassian Marketplace. You don’t need to do a thing to facilitate this transaction - we’ll collect applicable taxes, and submit returns based on the applicable laws. These laws vary depending where the end user (app purchaser) is located.

Selling your app as paid via Atlassian enables us to handle taxes in this way. As a paid via Atlassian app vendor, you agree to grant Atlassian an unlimited license to resell your apps through the Marketplace.

What if I’m a developer based in Australia?

As an app developer based in Australia, you’re required to advise Atlassian of your Australian ABN and GST status. You are also required to advise Atlassian if there is any change to your GST status. Failure to provide your ABN may result in no ABN withholding at the top marginal tax rate.

If you are GST registered, you are required to issue a tax invoice to Atlassian. However, Atlassian will generate this invoice on your behalf (known as a Recipient Created Tax Invoice (RCTI)) and pay you the GST inclusive amount you owe to the ATO. You will still need to remit the GST and report it to the Australian Tax Office in the BAS return.

If you are not GST registered, there is no need to issue a tax invoice to Atlassian. When you sell your app to Atlassian, the sale is not subject to GST.

What if I’m a developer based in the European Union?

Under section 4.4 of the Marketplace Vendor Agreement, Atlassian is responsible for collecting tax on sales of apps. You are responsible for taxes resulting from Atlassian’s payments.

As Atlassian is a GST registered business in Australia, your app sale to Atlassian is not subject to Australian GST.

Whether you need to issue Atlassian a wholesale invoice depends on the laws in your EU member state. If an invoice is required, please issue the invoice to Atlassian Pty Ltd based on the amount advised on the remittance advice and send to ap@atlassian.com.

My region isn’t mentioned–what do I do about taxes?

Unfortunately we can’t cover all regions here. We recommend contacting your local tax adviser to determine if sales made to an Australian company are subject to tax on sales or invoicing obligations in your jurisdiction.

Do I have to pay royalty withholding tax on payments received from Atlassian?

Under section 5.4 of the Marketplace Vendor Agreement, you grant Atlassian the nonexclusive, royalty-free, worldwide right and license to resell and distribute the apps.

The payment from Atlassian is a revenue sharing on the sales concluded on Atlassian Marketplace. The Australian Tax Office doesn’t classify such payment as royalties. Atlassian will not withhold any royalty withholding tax unless advised otherwise.

Who do I contact with further tax questions?

Atlassian can’t know all the nuances of your individual situation, so we encourage you to seek advice from a registered tax advisor. We suggest finding somebody knowledgeable about sales and income tax, local levities, and any other taxes that might apply.

Much as we might like to be, we’re not tax gurus, so the information we provide should be considered as general information. These FAQ shouldn’t be relied on as tax advice or acceptance of responsibility for your tax liability or related costs.