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Is GST payable

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Newbie

Views 680

Replies 9

I am a contractor employed by agency A and on task with Agency B. Agency B needs me to travel overseas and has a set procedure and authorities for travel. Agency B pays for my flights, accom and travel related requirments directly. I am however required to pay my own meals and incidentals during the travel up to the limit set in Agency B's travel approval document.

 

Upon retun, I claim for reimbursment through my parent company - Agency A who then claims the cost through Agency B however; when it is deposited in my bank, it is less GST.

 

Am I being short changed for travel related expensesincurred overseas where I am being reimbursed - less the GST componant?

1 ACCEPTED SOLUTION

Accepted Solutions
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Best answer

Community Manager

Replies 5

Hi @ Alex_Colrain,

 

Thanks for your patience.


Based on the information you have provided, if the meal and incidental expenses are incurred overseas they will not include an Australian GST component. Therefore, if the payments you receive are ‘less GST’ you should not be out of pocket.

 

However, the expense recovery between Agency A and Agency B may be considered a taxable supply (on which GST is payable) between the two GST registered businesses.

 

Please see GST and employee reimbursements for more information.

 

Thanks

 

KylieS

 

9 REPLIES 9
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Devotee

Replies 8

Are you registered for GST? If you are, you may be able to claim back the relevant GST component for travel purchases you make
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Newbie

Replies 7

No, I am not registered for GST - I am a full time employee of the company.

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Community Manager

Replies 6

Hi Alex_Colrain,

 

That doesn't seem right, we will look into it and get back to you as soon as possible.

 

Thanks

 

KylieS

Highlighted

Best answer

Community Manager

Replies 5

Hi @ Alex_Colrain,

 

Thanks for your patience.


Based on the information you have provided, if the meal and incidental expenses are incurred overseas they will not include an Australian GST component. Therefore, if the payments you receive are ‘less GST’ you should not be out of pocket.

 

However, the expense recovery between Agency A and Agency B may be considered a taxable supply (on which GST is payable) between the two GST registered businesses.

 

Please see GST and employee reimbursements for more information.

 

Thanks

 

KylieS

 

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Newbie

Replies 4

Hi KylieS,

 

Thank you very much, this is most appreciated.

 

Can I also pls ask what the componant is for domestic travel? The same occurs where the reimbursement is less GST - as such we are left the GST componant short from what the meal and incidental componant actually is.

 

For Example, the calculator will say $160 for meals and incidentals, and when we are reimbursed, we only receive $142.4.


Thank you.

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Community Manager

Replies 0

Hi @Alex_Colrain,

 

I will check this out for you.

 

Thanks

 

KylieS

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Community Manager

Replies 2

Hi Alex_Colrain,

 

Thanks for you patience (again).

 

Generally, when you claim a reimbursement from your employer they will be entitled to claim the GST component for the GST included in the cost of the items you have purchased.

 

Your employer will require a tax invoice (if the item costs more the $82-50) to be able to claim a GST credit.

 

Example: Reimbursement of work-related expense  illustrates that the employer reimburses the employee the full amount incurred, including the GST.

 

The information in the link above also details the different treatment of allowances and reimbursements paid to employees.

 

KylieS

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Newbie

Replies 1

Thank you once again KylieS.

 

So basically what you are saying is, my employer should not be witholding GST when reimbursning me, leaving me 11% out of pocket for per diem travel expenses either domestically or for International travel?

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Community Manager

Replies 0

Hi @Alex_Colrain,

 

That is correct.

 

KylieS