Member Q&A – GST and payments to non-resident suppliers

We recently received a Q&A from a member asking about GST and invoices from overseas suppliers. Question: Our Accounts section is querying whether an overseas invoice with GST can be processed with the GST included. The invoice has an ARN (Australian Registration Number) and appears to be for the purchase of an online subscription. GST … Read more

Member Q&A – GST and valid tax invoices

We recently received a Q&A (and a follow up question) from a member asking about GST and valid Tax Invoices. Question: For a Tax Invoice to be valid for a purchase over $1,000 it needs to include the buyers identity or ABN. For credit card transactions over $1,000 that we are paying to Creditors and … Read more

Categories GST

GST and Third Party Payments: What are they and when do they impact the usual GST outcomes?

We recently received a Q&A from a member asking about the GST implications of providing emergency natural disaster funding assistance to homeowners. Background As described to us, an entity (Entity A) pays grants of financial assistance to individual homeowners who qualify for support to assist them recover from natural disasters. The assistance is to help … Read more

How are guarantees treated for GST purposes?

The following article is derived from a Q&A we received recently. However, in this article we have expanded our response to include a more detailed analysis to the underlying issues identified. Question: Our current process for a bank guarantee is that the payment is made based on the GST inclusive price of the total contract … Read more

Categories GST

Member Q&A – Does GST apply when reimbursing a contractor’s expenses?

Question: Council have engaged a contractor to provide a service. In order to provide the service the contractor is required to purchase materials and will incur other expenses, however before purchasing any materials or incurring any expenses, the contractor must receive approval from Council in order to be reimbursed. On completion of the project, Council … Read more

GST, FBT and vouchers: How does it work?

Overview We regularly receive questions related to the GST and FBT issues associated with am employer purchasing and giving vouchers to employees. There are many reasons why vouchers/gift cards may be provided to staff but some of the more common include: As a gift – for example, a birthday or Christmas gift As a reward … Read more

GST and the margin scheme: Some recent observations

The majority of margin scheme transactions are relatively straightforward. However, various amendments to the margin scheme rules over the years (notably in 2005 and 2008) have seen a range anti-avoidance measures included which add layers of complexity when seeking to determine the two key questions: Am I eligible to apply the margin scheme? and How … Read more