Does a pro forma invoice constitute a tax invoice? And if so, does a pro forma invoice allow an entity to claim GST credits? Introduction It is not uncommon for businesses supplying goods or services to first issue a pro forma invoice to their clients before any goods or services are provided or agreed …
A question commonly received by TaxEd as a part of our Q&A service is whether the disposal of vacant land by a local council/government is subject to GST. This article looks at when a disposal of land may be GST-free under the disposals of unimproved land provisions. Introduction A question commonly received by TaxEd as …
It is relatively common for employers to buy and give vouchers or gift cards to staff (for example, as a gift or reward). This article looks at the GST and FBT implications that arise. Vouchers bought and given to staff Many employers provide vouchers or gift cards to staff. There are various reasons why vouchers/gift …
What happens where the vendor wants to apply the margin scheme, but the purchaser doesn’t? Question We are a local government entity and are purchasing a private property in order to develop it into a park. The vendor is requesting GST under the margin scheme, but as we won’t be selling the property this is …
Read moreGST Q&A – Acquiring property without applying the margin scheme
Entitlement to GST credits for entertainment expenditure is subject to the interplay of the FBT and income tax deduction provisions. We explore whether GST credits are available where entertainment expenditure is incurred in holding functions available to the general public. We have previously published an article that looks at the interaction between GST and FBT …
Read moreGST Credits for functions made available to the public
When looking at the characterisation of exempt taxes, fees and charges, the GST provisions refer to supplies being regulatory in nature. How do you determine whether the provision of information, or thing being done, is regulatory in nature? When trying to determine whether a tax, fee or charge will be exempt from GST under Division …
Read moreGST – How to determine if something is regulatory in nature
Question Council has been invoiced by a State Government department for a capital works project Council is contributing to. Should GST be included in this invoice? As further detail, in order to pay this contribution, Council received funding through a grant from a different government department which had no GST associated with it. Answer In …
Council has reimbursed a claimant for an excess payment on a vehicle smash repair. What are the GST implications for Council of the reimbursement? Question A claimant has lodged a reimbursement claim with Council for an excess payment on a vehicle smash repair. To support their claim, a tax invoice issued by the repairer to …
Read moreGST Q&A – GST on reimbursement for insurance excess claim
The classification of an arrangement as one of employment or an independent contract is critical to determine the income taxation (and other) obligations an entity will have. This article broadly considers some of the differing implications under the PAYGW, superannuation guarantee, GST and FBT regimes once an arrangement has been properly classified. Whether an arrangement …
Read moreGST – The effect of the employee/contractor distinction
A recent case has considered whether the transfer of title to an apartment was a ‘supply of accommodation’ for purposes of the GST concessional (GST-free) treatment of supplies of accommodation for consideration that is less than 75% of the GST-inclusive value of the supply. Charities, deductible gift recipients (DGRs) and government schools are able to …