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When calculating type 1 taxable value of fringe benefits using the higher gross up rate because the benfit is a GST creditable supply, is the GST inclusive value or the GST exlusive value used at Label 14A on the return.

 

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Hi @djc2404,

 

Thanks for your patience whilst we received specialist information regarding your query.

 

The taxable value of a fringe benefit will include the GST (where applicable) in the cost of providing a benefit to an employee. Therefore it will be the GST inclusive value that is used in calculations of FBT payable.


You can find information on Completing your FBT return 2018 calculation details – taxable employers which explains the GST inclusive nature of ‘taxable value' as:

  • Employee contributions (other than a contribution of services as an employee) are consideration for a taxable supply and you must pay GST on the supply. The GST-inclusive employee contribution reduces the taxable value of the fringe benefit.

Hope this helps, JodieH.

1 REPLY 1

Best answer

ATO Certified

Community Support

Replies 0

Hi @djc2404,

 

Thanks for your patience whilst we received specialist information regarding your query.

 

The taxable value of a fringe benefit will include the GST (where applicable) in the cost of providing a benefit to an employee. Therefore it will be the GST inclusive value that is used in calculations of FBT payable.


You can find information on Completing your FBT return 2018 calculation details – taxable employers which explains the GST inclusive nature of ‘taxable value' as:

  • Employee contributions (other than a contribution of services as an employee) are consideration for a taxable supply and you must pay GST on the supply. The GST-inclusive employee contribution reduces the taxable value of the fringe benefit.

Hope this helps, JodieH.

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