Does a doctor account for GST on gross fees or net payments received?

 Author: JayATO(Community Support)Community Support

28 July 2026

Hi @Charliep,

The GP accounts for GST on the gross billing amount they receive from the medical centre. When the medical centre pays the GP, the full amount received (before any management fees are deducted) represents the GP's taxable supply, and GST applies to this gross amount.

Here's how this works in practice. The GP provides medical services and bills the medical centre for the gross amount. If the GP is registered for GST, they need to account for GST on this total billing amount. The management fees charged by the medical centre are a separate arrangement and don't reduce the amount on which the GP calculates GST.

This arrangement is common in medical centre settings where GPs operate as independent contractors. The key point is that GST applies to the value of the supply made, not just the net payment received after fees.

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