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  • 1.8.3 What are the GST implications if an owner of a strata unit is reimbursed for purchases made on behalf of the body corporate, and GST was included in the price of the purchases?

    For source of ATO view, refer to paragraphs 48 to 54 of GSTR 2000/37 Goods and services tax: agency relationships and the application of the law

    ATO position

    The unit owner is not liable for GST on the reimbursement it receives from the body corporate. This is because the reimbursement is not consideration for a supply made by the unit owner. The purchases made by the unit owner on behalf of the body corporate (that is, the unit owner acting as agent for the body corporate) are considered to be the body corporate's own purchases. Therefore, if the purchases are creditable acquisitions for the body corporate, it would be entitled to claim input tax credits for the GST included in the price of those purchases.

      Last modified: 05 Aug 2016QC 16473