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awilkerson(Newbie)Newbie
12 July 2024

I'd like to clarify the movement of invoices in this scenario. It's for the music business.


My band put on a show last week. $3000 worth of tickets were sold via a booking site. The booking site charges a booking fee which is paid by the ticket purchaser, so the venue and the band are outside of this transaction.


The funds from the ticket sales are passed to the venue. The venue provides sound, lights and the location for the show, and charges $1028 for these services. Presumably this is GST inclusive, as there is no indication otherwise.


The venue now wants to charge the band GST on the $3000 ticket sales, and wants the band to submit an invoice for $3000 - $272.73 (GST on $3000) - $1028 = $1699.27.


I don't believe this is correct. The funds from the ticket sales belong to the band, and the venue should only be charging the $1028 (inclusive of GST), and passing $1972 (nett) to the band.


In addition, I am not sure which entity should be providing which invoice. Can I obtain some clarification, please?




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Matt_ATO(Community Support)Community Support
16 July 2024

Howdy @ awilkerson,


Here we go, my take on how invoices and the handling of GST (Goods and Services Tax) from what you have described.

  1. Ticket Sales:
  • The $3,000 collected from ticket sales via a booking site is revenue for the band since they are the primary service provider (the performance).
  • The booking fee charged by the site is separate and is paid by the ticket purchasers, not affecting the band’s revenue or the venue’s charges.
  1. Venue Services:
  • The venue charges $1,028 for providing sound, lights, and location. If this amount is GST inclusive, it means the actual service cost is less than $1,028, with the remainder being the GST component.
  1. GST on Ticket Sales:
  • The venue should not charge GST on the ticket sales again if the band is not registered for GST or if the band is registered and has already included GST in the ticket price.
  • If the band is registered for GST, they should issue an invoice to the venue for the full amount of the ticket sales ($3,000), including GST.
  1. Net Payment to the Band:
  • The band should receive the ticket sales amount minus the venue’s charges. If the venue’s fee is GST inclusive, the band should receive $3,000 - $1,028 = $1,972.
  1. Invoicing:
  • The band should issue an invoice to the venue for the total ticket sales ($3,000).
  • The venue should issue an invoice to the band for the services provided ($1,028 GST inclusive).

The calculation for the GST on $3,000, assuming the band is registered for GST, would be:

GST=111​×$3,000=$272.73


The net amount the band should invoice the venue would be:

Net Amount=$3,000−$272.73(GST)=$2,727.27


And the amount the band should receive after deducting the venue’s charges would be:

Payment to Band=$2,727.27−$1,028=$1,699.27


However, this calculation assumes that the band is registered for GST and needs to remit the GST amount to the us. If the band is not registered for GST, then they would invoice the full $3,000 and expect to receive $1,972 after the venue’s charges.

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Most helpful reply

Matt_ATO(Community Support)Community Support
16 July 2024

Howdy @ awilkerson,


Here we go, my take on how invoices and the handling of GST (Goods and Services Tax) from what you have described.

  1. Ticket Sales:
  • The $3,000 collected from ticket sales via a booking site is revenue for the band since they are the primary service provider (the performance).
  • The booking fee charged by the site is separate and is paid by the ticket purchasers, not affecting the band’s revenue or the venue’s charges.
  1. Venue Services:
  • The venue charges $1,028 for providing sound, lights, and location. If this amount is GST inclusive, it means the actual service cost is less than $1,028, with the remainder being the GST component.
  1. GST on Ticket Sales:
  • The venue should not charge GST on the ticket sales again if the band is not registered for GST or if the band is registered and has already included GST in the ticket price.
  • If the band is registered for GST, they should issue an invoice to the venue for the full amount of the ticket sales ($3,000), including GST.
  1. Net Payment to the Band:
  • The band should receive the ticket sales amount minus the venue’s charges. If the venue’s fee is GST inclusive, the band should receive $3,000 - $1,028 = $1,972.
  1. Invoicing:
  • The band should issue an invoice to the venue for the total ticket sales ($3,000).
  • The venue should issue an invoice to the band for the services provided ($1,028 GST inclusive).

The calculation for the GST on $3,000, assuming the band is registered for GST, would be:

GST=111​×$3,000=$272.73


The net amount the band should invoice the venue would be:

Net Amount=$3,000−$272.73(GST)=$2,727.27


And the amount the band should receive after deducting the venue’s charges would be:

Payment to Band=$2,727.27−$1,028=$1,699.27


However, this calculation assumes that the band is registered for GST and needs to remit the GST amount to the us. If the band is not registered for GST, then they would invoice the full $3,000 and expect to receive $1,972 after the venue’s charges.

Liked by Bennyakm
Fandangerista(Newbie)Newbie
17 July 2025

Thanks Matt, very helpful, but... supplementary cautious question for clarification:

You say with respect to GST on ticket sales, "The venue should not charge GST on the ticket sales again if the band is not registered for GST" etc.


Why "again"? Do you mean "again, after applying the rules of GST to their own service payment (in which GST was incorporated)"? Or are you assuming that an earlier application and deduction of GST on the ticket price as a whole has taken place? I just want to make sure that the latter is not the case as in this instance it doesn't appear to be.

NikkiATO(Community Moderator)Community Moderator
23 July 2025

Hi @Fandangerista,


At the end of the day (when it comes to the original question) things like the contract/agreement between the booking site, the venue and the band would need to be considered. Without knowing this (and as @Matt_ATO says) this was just a take on how invoices and the handling of GST may have been applied.


The original question also includes presumptions, so the info provided is a generalisation and may overlook detail that could be significant in a different context or to your personal situation. Check out our Disclaimer page for more info on this.


If you have a similar situation that you’re seeking help with, please provide some details so we can make sure the reply is more tailored and doesn’t steer you in the wrong direction.

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