Entity A paid employees through payroll, then invoiced Entity B for the hours those employees worked for Entity B. Entity A and Entity B have same directors but their BAS is lodged separately, both are GST registered. Should the invoice incur GST (as income on Entity A and as expense on Entity B)?
Thank you.
Hi @JC17,
Yes, the invoice from Entity A to Entity B should include GST. When Entity A invoices Entity B for the labour supply, this is a taxable supply between two separate GST-registered entities, even though they share the same directors.
Both entities are registered for GST and lodge separate business activity statements. This means they operate as separate entities for GST purposes. Entity A must include GST on the invoice as it's making a taxable supply. Entity B can then claim a GST credit for this expense, provided they hold a valid tax invoice from Entity A.
Hi @JC17,
Yes, the invoice from Entity A to Entity B should include GST. When Entity A invoices Entity B for the labour supply, this is a taxable supply between two separate GST-registered entities, even though they share the same directors.
Both entities are registered for GST and lodge separate business activity statements. This means they operate as separate entities for GST purposes. Entity A must include GST on the invoice as it's making a taxable supply. Entity B can then claim a GST credit for this expense, provided they hold a valid tax invoice from Entity A.
15 Apr 2026 · 4 min read time
22 Apr 2024 · 6 min read time
15 Apr 2026 · 4 min read time
17 views
1 replies