Your organisation can claim a GST credit when it reimburses employees, officers, volunteers and agents for their out of pocket expenses when certain requirements are satisfied.
Employees and officers
If you are registered for GST, you can claim a GST credit on an employee or officer reimbursement if:
your employee’s or officer's expense:
was directly related to their activities as your employee or officer, or
is an expense payment fringe benefit.
GST was included in the price the employee or officer paid
you hold appropriate documentation, for example a valid tax invoice
your employee or officer is not entitled to claim a GST credit for the expense
We sometimes receive questions from organisations on whether they can claim GST credits on reimbursements to volunteers when purchases are made by the volunteer in carrying out the organisation’s activities.
Non-profit organisations, for example sporting clubs, generally can not claim GST credits when they reimburse a volunteer. However, you can claim a GST credit for volunteer reimbursements if:
you are:
an endorsed charitable institution
an endorsed trustee of a charitable fund
a gift-deductible entity, or
a government school, and
the volunteer’s expense was related to your activities
GST was included in the price the volunteer paid
you hold appropriate documentation, for example a valid tax invoice
the volunteer is not entitled to claim a GST credit for the expense
the expense is not listed as non-deductible, and
the expense is for a creditable purpose.
Agents
If you are registered for GST, you can claim a GST credit on an agent reimbursement if:
the agent, on their own behalf, incurred an expense that was directly related to their activities as your agent (for example, the agent incurred petrol expenses)
GST was included in the price the agent paid
you hold appropriate documentation, for example a valid tax invoice
your agent is not entitled to claim a GST credit for the expense
over $82.50 (GST inclusive), your organisation must hold the tax invoice issued to your employee, officer, agent or volunteer for the purchase they made, and GST must be included in the price paid, or
$82.50 or less (GST inclusive), your organisation does not need to hold a tax invoice, but must have some other documentary evidence of the purchase, (for example, a cash receipt issued to your employee, officer, agent or volunteer for the purchase they made) and GST must be included in the price paid.
For more information about reimbursing employees and volunteers, refer to:
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