Hi, I am organising a sailing event for a sailing association. My club will conduct the event in conjunction with the association. The club will charge the association a fee, including GST, to conduct the event. The fee includes sailing and administration aspects of the event. Participants will enter the event via a web page on the club website, using credit card payment for the entrance fee. The idea was that the fees paid via the club website would be transferred to the association after the club had deducted the fees for conducting the event.
The club is registered for GST and says that it is required to pay GST on the entrance payments. I don't understand this as the only service that the club is providing in this instance is collecting money on behalf of the association. There would be some administration service involved but an administration fee, including GST, will be paid to the club by the association.
Are we, the club and the association, able to avoid paying GST on the entrance fees in this case?
Thanks for any advice.
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