Should GST be charged on intercompany shared services between parent and child Australian GST registered entities. Child entity lodges FBT return for employees that are subsequently cross-charged to parent entity. On cross-charge (intercompany tax invoice) should GST be charged for the portion of FBT that relates to parent entity?
Hi @ConnieG,
You mentioned the transaction is between 2 connecting companies a parent and a child. Are they a part of a GST group?
This where one member of the group is representative, and the others are members. The representative completes activity statements and accounts for GST on behalf of the whole group.
If you're part of a GST group any transactions between the group members are ignored for GST purposes. This means you don't charge GST on sales you make, and you can't claim GST credits on any purchases you make between companies.
You can also read more on when to charge GST on our website.
Hi @ConnieG,
You mentioned the transaction is between 2 connecting companies a parent and a child. Are they a part of a GST group?
This where one member of the group is representative, and the others are members. The representative completes activity statements and accounts for GST on behalf of the whole group.
If you're part of a GST group any transactions between the group members are ignored for GST purposes. This means you don't charge GST on sales you make, and you can't claim GST credits on any purchases you make between companies.
You can also read more on when to charge GST on our website.
15 Apr 2026 · 4 min read time
22 Apr 2024 · 6 min read time
15 Apr 2026 · 4 min read time
2,735 views
1 replies