As of July 2017, Australia requires non-resident entities like Twilio Inc dba SendGrid & its affiliates (hereinafter, “Twilio SendGrid”) to collect a Goods and Services Tax (GST) for any digital services sold to customers in Australia. This guide covers how Twilio Sendgrid charges GST, and what goods are taxable
The following topics are discussed in this guide. Click a topic to skip directly to this information:
- Goods and Services Tax (GST) Overview
- When will Twilio Sendgrid start charging GST?
- How can I be Tax Exempt for GST?
- How do I enter my GST number?
- How is GST Determined?
- What Rate is GST Charged?
- I Forgot to Enter my GST Number, But am a GST Registered B2B customer - Can I Get a Refund?
- What is Twilio Sendgrid's ABN Number?
- Will my Invoice be in Australian Dollars?
- Where Can I See the GST Charged?
Good and Services (GST) Overview
Australia passed legislation effective July 1, 2017 requiring non-resident entities selling digital services to collect and remit a 10% Goods and Services Tax (GST) on its sales to customers located in Australia. The tax only applies to inbound intangible goods sold to consumers, which broadly includes anything other than goods or real property to an Australian consumer. In addition, non-residents are only required to apply GST on Business to Customer (“B2C”) transactions. Business to Business (“B2B”) transactions will not be charged GST if a valid GST number is provided by the B2B customer. See Tax and Superannuation Laws Amendment (2016 Measures No1) Bill 2016.
When will Twilio SendGrid start charging GST in Australia?
Twilio Sendgrid will begin collecting GST on services sold to customers located in Australia starting November 2025.
How can I be tax exempt for GST?
B2B customers will not be taxed with a valid GST number, which should be entered in the Sendgrid Account Details Page. However, B2B customers should self-assess the GST through the reverse charge mechanism.
Question: I am a business, but do not have a GST number. I am not required to register for GST since my business falls under the required sales threshold for registering.
Answer: The GST laws for nonresidents are designed to capture GST from B2C consumers, and from B2B consumers that fall under the sales threshold. Unless a B2B customer can provide a valid GST number, they will be taxed as a B2C. Nonresidents are not required to tax B2B customers with valid GST numbers, since B2B customers are supposed to self-assess the GST on their end.
Question: Are Nonprofits subject to GST in Australia?
Answer: Yes, nonprofit organizations that are not GST registered are subject to tax. Supplies made to a non-profit organization that is not registered for GST purposes in Australia should be considered as supplies provided to a B2C customer, and thus taxable.
How do I enter my GST number?
B2B customers can enter their 11-digit GST number in the "GST Number" field in the Account Details Page.
How is GST determined?
GST is applicable based on the type of products or services that are purchased. We have determined that all of Twilio Sendgrid’s services are subject to GST.
Please ensure your service address is up to date in the Account Details Page for correct taxation.
What rate is GST charged in Australia?
Twilio SendGrid's services will be subject to the 10% GST rate as determined by the Australian Taxation Office.
For example, a customer in November 2025 would be charged the GST standard rate of 10% for all taxable sales. If this customer spends $1,000 with Twilio Sendgrid out of which $1,000 is taxable, they would be charged an additional $100 for GST, for a total of $1,100
Total taxable sales: $1,000
Goods and Services Tax (GST) @ 10%: $ 100
= Total including taxes: $1,100
I forgot to enter my GST number, but am a GST registered B2B customer - can I request a refund?
No. Refunds will not be issued if a B2B customer is inadvertently charged GST and later provides a valid GST number. B2B customers can reclaim the tax on their end when their GST return is filed.
What is Twilio Sendgrid's ABN Number?
Twilio Sendgrid's Australian Business Number (ABN) is 56 811 703 253.
Will my Invoice be in Australian Dollars?
No. As a non-resident, Twilio Sendgrid is allowed to provide an invoice either in USD or AUD, but is required to provide a foreign exchange rate for the GST amount. Your invoice will be in the same currency as your pricing and console experience to provide you a consistent experience across Twilio Sendgrid. If your console experience is in USD, your invoice will be in USD with the foreign exchange rate at the bottom of the invoice.
Where can I see the GST charged on my Invoice?
GST can be found on your invoice in the Usage Summary section under “Taxes”. This line item represents the GST charged.
The foreign exchange rate between AUD and USD is also mentioned on the invoice.