Is this a taxable supply?
- Probably
- I think the confusion is coming from what the charge is vs why they charge it. It's most likely management fees is what is being charged. Why that amount would be the goods or service that was used
- It may be easier to think of it as they charge extra management fees to cover the costs of goods or services
- If it's on-charge at cost, it shouldn't cost more on items that already have GST: since they charge GST I'm assuming they are registered so they would already get the GST back. So when charging you it would be the gst-exclusive price and add on GST, it would be the same price they pay for it
- For items that don't have GST, it would the price of the good or service and GST added on top
Isn't it just a reimbursement regardless of the name it is purchased in and therefore no GST is applicable?
- Probably not, that's why the clause you quote doesn't say reimbursement
There's probably a more relevant determination but here's something similar
GSTD 2000/10, landlords registered for GST collect GST on 'reimbursements' as it's treated as additional rent
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