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YADA(Newbie)Newbie
18 Feb 2022

We are an NFP and we rent a shop. Real estate send us the water usage bill (which does not incur GST) but then adds GST on the invoice to us. He states that because he is sending us a tax invoice it must include GST on it. I don't feel that is correct. If this is incorrect, I want to have something in writing to show that he is incorrect.

10,078 views
3 replies
10,078 views
3 replies

Most helpful response

Most helpful reply

AriATO(Community Support)Community Support
21 Feb 2022

Hi @NFP


This can be a tricky one. If the real estate is paying the water bill and they're invoicing you for their services then they need to charge GST. Even though part of their service is to recoup the costs of the water bill the service they're providing to you isn't GST-free. The GST-free treatment of the supply of water can only be provided by the supplier. If you paid them directly then you wouldn't pay GST.

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Most helpful reply

AriATO(Community Support)Community Support
21 Feb 2022

Hi @NFP


This can be a tricky one. If the real estate is paying the water bill and they're invoicing you for their services then they need to charge GST. Even though part of their service is to recoup the costs of the water bill the service they're providing to you isn't GST-free. The GST-free treatment of the supply of water can only be provided by the supplier. If you paid them directly then you wouldn't pay GST.

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GST being charged on Water usage from Real Estate agent | ATO Community