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GST turnover Non profit organisation

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Newbie

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Hello, 

 

I work with a non-profit organisation, with DGR status. Their revenue has exceeded $150,000 which is the GST registration threshold for non-profits, however they may still fall under the threshold depending on the classification of their income types. 

 

They are a hospitality non-profit, who run weekly dinners at pop up restaurants to generate income. The paid dinners are commercial income and would definitely be included for GST turnover purposes. But this income alone would not take them over the $150k threshold. 

 

In addition to the weekly dinners, they hold an annual fundraising dinner. This dinner is at a substantially higher price that the weekly dinner (around 5 times the price), has more inclusions, and is held at a large event space, not their standard restaurant. In any other non-profit organisation, with DGR status, the fundraising dinner would not form part of the GST turnover. However, given that holding dinners is the main revenue generating activity of the organisation, I am questioning whether the fundraiser dinner can be considered substantially different enough from the main commercial activities and excluded from GST turnover?

 

Thanks

 

 

 

 

1 ACCEPTED SOLUTION

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ATO Certified

Community Support

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Hi @jcol,

 

Welcome to our Community!

 

Generally speaking, a not-for-profit organisation may choose to treat certain fundraising events as input taxed, where any proceeds from an input taxed fundraising event won't form part of the organisations GST threshold. However, if an organisation holds more than 15 of the same type of events in a financial year, none of the events can be treated as input taxed.

 

However, to be able to provide a definite answer, we'd need to know more information. If you wish to clarify your situation further, you can email our GST team at GSTmail@ato.gov.au

 

Thanks, JodieH.

 

 

1 REPLY 1
Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @jcol,

 

Welcome to our Community!

 

Generally speaking, a not-for-profit organisation may choose to treat certain fundraising events as input taxed, where any proceeds from an input taxed fundraising event won't form part of the organisations GST threshold. However, if an organisation holds more than 15 of the same type of events in a financial year, none of the events can be treated as input taxed.

 

However, to be able to provide a definite answer, we'd need to know more information. If you wish to clarify your situation further, you can email our GST team at GSTmail@ato.gov.au

 

Thanks, JodieH.