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  • Issue 29 – Meals supplied to staff

    A restaurant may supply meals to its staff.

    Issue

    What is the GST treatment of meals supplied to staff before, during or after a shift?

    For source of ATO view, refer to the general application of the principles in GSTR 2001/3 - Goods and services tax: GST and how it applies to supplies of fringe benefits

    Decision

    The supply of meals to staff will be taxable where the normal requirements of a taxable supply are satisfied. Where staff pay for the meal, the payment is consideration for a taxable supply and GST is payable. Where the meal is supplied free of charge, there is no GST supply. There may be fringe benefits tax consequences to consider.

    References

    Goods and Services Tax Ruling, GSTR 2001/3 - Goods and Services Tax: GST and how it applies to supplies of fringe benefits discusses the interaction between fringe benefits tax (FBT) and GST. See in particular paragraphs 15 to 42.

      Last modified: 28 Jun 2010QC 17693