Does ChatGPT Have GST in Australia? Yes — Here’s What to Claim

Yes. OpenAI charges 10% GST on ChatGPT subscriptions sold to Australian customers. Here’s what that means for your tax, your BAS, and what you can actually claim.

Why ChatGPT has GST in Australia

Since July 2017, Australian tax law requires overseas digital service providers to collect GST when selling to Australian consumers. This is the same rule that applies to Netflix, Spotify, Adobe, and every other foreign subscription service sold here. The ATO calls these “imported digital services.”

OpenAI is registered for GST in Australia and charges 10% on top of its subscription prices for Australian accounts. It’s not optional, and it’s not unique to ChatGPT.

What ChatGPT actually costs in Australia with GST

OpenAI prices in USD. At an AUD/USD rate of around 0.63, here’s what Australian subscribers pay including GST:

• ChatGPT Free, $0
• ChatGPT Plus, USD $20/month, approximately AUD $35/month including GST
• ChatGPT Team, USD $25/user/month, approximately AUD $44/user/month including GST
• ChatGPT Pro, USD $200/month, approximately AUD $349/month including GST

Your credit card will be charged in AUD. The exact amount shifts slightly with the exchange rate each month.

How to get a tax invoice from OpenAI

OpenAI provides GST-inclusive invoices for Australian accounts. To download one:

1. Go to chatgpt.com and sign in
2. Click your profile icon, then Settings
3. Go to Billing
4. Under payment history, click Download invoice next to any charge

The invoice will show your ABN (if you’ve added it to your account), the GST amount, and the total paid. Add your ABN in the Billing section to get a proper tax invoice you can use for your BAS.

Can you claim the GST back?

If your business is registered for GST, yes, you can claim the GST component of your ChatGPT subscription as an input tax credit on your BAS. The GST is 1/11th of the total amount charged.

On a ChatGPT Plus subscription of ~$35/month, the claimable GST is approximately $3.18/month.

In Xero, categorise the expense under Software Subscriptions (or IT Expenses) and set the tax rate to “GST on Expenses (15%)”, wait, it’s 10% in Australia, so “GST on Expenses.” In MYOB, use the same category with the GST tax code applied.

If your business is not registered for GST (under the $75,000 turnover threshold), you can’t claim the GST back, but the full subscription amount is still a deductible business expense.

What about Claude, Gemini, and Copilot?

The same rules apply across the board. All major AI subscription services sold to Australian customers charge GST:

• Claude Pro (Anthropic), GST applies
• Google Gemini Advanced / Workspace, GST applies
• Microsoft Copilot / Microsoft 365, GST applies
• Canva Pro, Canva is Australian, GST applies
• Midjourney, overseas provider, GST applies

Any overseas digital service subscription you pay for as an Australian business will have GST on it. The invoice may or may not show it explicitly depending on how the provider formats their billing, but it’s included in the total.

The short version

ChatGPT charges GST. Download your invoice from the Billing section, add your ABN to get a proper tax invoice, claim the GST on your next BAS if you’re registered, and categorise the rest as a software expense. It’s a straightforward business cost, no different from any other SaaS subscription.

For the full pricing breakdown across all ChatGPT plans in AUD, see our ChatGPT pricing guide for Australian small business.

Sources

• GST and digital services from overseas, ATO
• ChatGPT pricing, OpenAI
• How Much Does ChatGPT Cost in Australia?, SmallBizAI.au

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