Announcements
We’re doing scheduled maintenance on ATO Community to bring you a bigger, better and brighter online community.
You may see us go into read-only mode over the weekend while we do this. Don’t worry! You’ll still be able to search the site to find your answers.

ATO Community

Re: Is intercompany expenses recovery GST turnover for Jobkeeper

Devotee

Views 902

Replies 1

A parent company's accountant works 60% for the parent company (importer), and 40% for its subsidiary company (professional service). The accountant is on the parent company's payroll.

The parent company also shares an office with the subsidiary company. Parent company pays 100% of office rent to the landlord.

Each month parent company issues a GST invoice to the subsidiary company to recover the accountant's costs and a portion of the office rent.

Question: Shall we include this in the parent company's GST turnover for jobkeeper purposes?

We believe it is expenses recovery from the subsidiary, not a supply in connection with the enterprise we are undertaking (importer). Therefore it should be excluded from the GST turnover for jobkeeper.




1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

HI @MS,

 

This particular situation isn't addressed specifically, BUT, it's not one of the types of income that is excluded from GST turnover. You would need to include it in the GST turnover. A supply not connected with the entity, are things like the sale of personal assets.

 

A full breakdown of what is excluded for GST turnover is available on our website.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

HI @MS,

 

This particular situation isn't addressed specifically, BUT, it's not one of the types of income that is excluded from GST turnover. You would need to include it in the GST turnover. A supply not connected with the entity, are things like the sale of personal assets.

 

A full breakdown of what is excluded for GST turnover is available on our website.