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paultyndale(Newbie)Newbie
28 Oct 2024

We regularly incur reimbursable travel expenses as part of delivering our services to clients. Some are GST-free (eg overseas expenses) and some include GST (in-Australia expenses).


We generally itemize these on our invoice, total up the whole invoice and add GST to the total.


Should we remove the GST from the in-Australia expenses before adding GST to the whole invoice, or should we leave the GST on these expenses, effectively then charging GST on GST?


For example, If we have the following invoice:


Consulting fees $1000

Taxi fare $110 ($100 plus $10 GST)

Should our invoice total to the client be $1110 plus $111 GST or $1100 plus $110 GST?

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4 replies
987 views
4 replies

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Most helpful reply

WendyATO(Community Support)Community Support
29 Oct 2024

Hi @paultyndale,


No, the on-charging of tax and fees is itself taxable, so you calculate GST on $1,110.


Your invoice will be $1,110 plus $111 GST.

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Most helpful reply

WendyATO(Community Support)Community Support
29 Oct 2024

Hi @paultyndale,


No, the on-charging of tax and fees is itself taxable, so you calculate GST on $1,110.


Your invoice will be $1,110 plus $111 GST.

ToneG(Newbie)Newbie
1 Apr 2025

I am not sure you are correct. As Paul correctly observes, that means GST is being charged on GST. To my mind, Paul should be invoicing the client $1000, + $100 for the cab fare, and $110 for GST. The cab fare has only cost him $100 because he claims the $10 GST on his own BAS.

paultyndale(Newbie)Newbie
10 Nov 2025

Thankyou Wendy.

There still seems to be mixed views on this (eg ToneG's view below) - and we still regularly have our invoices sent back if we have charged GST on GST.

Also, we also get asked to not charge GST on expenses such as international airfares which are themselves GST fee.

Can I ask whether it is worth getting an official tax ruling on this? It would be good to know definitively what the correct approach is.

regards

Paul

NikkiATO(Community Moderator)Community Moderator
11 Nov 2025

Hi @paultyndale,

 

If you’re regularly dealing with pushback from clients and getting conflicting advice, it may be worth applying for a private ruling. This gives you a legally binding answer from us based on your specific situation.

 

We do have another private ruling on GST treatment of travel expenses, that may help too.

 

Essentially, the general rule is: If you’re on-charging expenses (like travel or accommodation) to your client, and those expenses are part of your taxable supply of services, then you include them in your invoice total and charge GST on the full amount, even if some of the underlying expenses already included GST.


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Should we charge clients GST on the GST paid on reimbursable travel expenses? | ATO Community