Issue 2 - Travel agent fee for visa applications

Travel agents may make visa applications for international travellers and charge a separate fee for this service.

Issue

What is the GST treatment of a fee received by a travel agent for arranging the processing of a visa application?

This issue is a public ruling for the purposes of section 105-60 of schedule 1 to the Taxation Administration Act 1953.

Decision

The service of making visa applications is GST-free. The supply is GST-free under section 38-360 because the use or enjoyment of the visa takes place outside Australia.

A 'visa' is essentially an endorsement made by an authorised representative of a country upon the passport of a citizen of another country, testifying that the passport has been examined and found in order, thereby permitting passage to the country making the endorsement. The travel agent is effectively arranging for the international travel of the passenger. Arranging for the issue of the passenger's visa is a component of arranging the passenger's travel outside Australia.

References

Section 38-360 of the GST Act (see Issue 1 - Travel agents' commissions for arranging overseas supplies)

See also fact sheet GST - Travel agents and commissions (NAT 4518).

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