I live in Australia and do freelance web development for clients in different countries. I'm dealing with one client now, who lives in Norway. I've done a few $1000 work of work for the client, but he wants invoices for the work. Am I able to do this when I am just doing freelance? I haven't declared the money to the government yet and don't have an ABN or anything, I just work freelance. Can anyone help me out on what my options are here?
Just make up a letterhead with a business name or even your own name and use that as an invoice. You can even number it. Any sales or service exported outside of Australia is GST exempt. The only thing you need to know is if you decide to spend that money it must be declared as income.
Okay so I don't need a business registered with the government to send an invoice? Okay, great. As for the income, I was going to declare it at the end of the financial year (June 09). That's okay, isn't it?
Also, I was just wondering about this. If I perform a service to a client overseas, but I do it in Australia, is this exempt from GST? And what exactly do you mean it must be declared if I wish to spend it? Of course I need to spend money to live.
Not sure. Here in the UK, you are meant to declare to the taxman that you have become self-employed within three months, for all that tax may not be payable until the end of the year. No idea if Australia has something similar, but a quick Google reveals http://www.ato.gov.au/businesses/, which may be useful. Being inside the tax system isn't all bad news -- by being legit, you also get to claim deductable expenses against your tax.