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jmiller91(Newbie)Newbie
10 Feb 2025

I am a performer. I performed a free show for as a gift in kind for a political party. I now have to provide an invoice to that political party to register my gift in kind. I know this is not a tax deductible gift as this is a service and not money or property. But I want to know the tax implications of making this gift in kind.


Do I charge GST on this invoice? Will i be required to pay GST on my BAS as a result of this invoice? Will this gift in kind invoice add to my overall taxable income for the financial year? are there any other tax implications i should be aware of?

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214 views
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Most helpful reply

BrookeATO(Community Support)Community Support
19 Feb 2025

Hi @jmiller91


The experts have spoken!!


Assuming you're registered for GST, you're only liable to GST for supplies that you make for consideration.

 

Supplies of gifts are not made for consideration. Therefore, you've got no GST liability and should not include any GST on any ‘invoice’.

 

An invoice is a common term that applies to an obligation to pay for something. Since there is no payment being sought, you ideally shouldn't be issuing the political party with a normal invoice but instead merely a statement as to the value of the service you performed for free. If they still insist on an invoice, you should ensure the amount due and payable is NIL and reflects a discount of 100% applied to the price as a ‘Gift’.

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Most helpful reply

BrookeATO(Community Support)Community Support
19 Feb 2025

Hi @jmiller91


The experts have spoken!!


Assuming you're registered for GST, you're only liable to GST for supplies that you make for consideration.

 

Supplies of gifts are not made for consideration. Therefore, you've got no GST liability and should not include any GST on any ‘invoice’.

 

An invoice is a common term that applies to an obligation to pay for something. Since there is no payment being sought, you ideally shouldn't be issuing the political party with a normal invoice but instead merely a statement as to the value of the service you performed for free. If they still insist on an invoice, you should ensure the amount due and payable is NIL and reflects a discount of 100% applied to the price as a ‘Gift’.

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Taxable Income - Impact of Gifts in Kind | ATO Community