We previously advised that the GST liability is calculated on $115 ($110 sales + $5 delivery fee) = $10.45. The fees paid to the offshore facilitator are not subject to GST. If the delivery driver is not registered, or required to be registered, for GST their delivery service to the food provider is not subject to GST. In these cases the food provider cannot claim a GST credit.
For income tax purposes, the reportable income will be $104.55 (which is $115 minus the GST component) PLUS the 45c paid by the facilitator.
The expense that can be claimed in the food provider’s income tax return will be the facilitator’s commission (as there is no GST) and the delivery fee (if the delivery is not subject to GST, or $4.55 if a 45c GST credit was claimed on the delivery fee).