Your not-for-profit organisation may be able to claim GST credits on purchases for volunteers.
Purchases for volunteers while carrying on activities
If your organisation buys things for its volunteers in carrying on its activities, it generally can claim GST credits for the GST included in the price of those things.
Examples: Entitled to claim
A sporting club buys uniforms for its volunteer players. The club is entitled to a GST credit for the GST in the price of the uniforms.
A charity buys a car for volunteers to use when carrying out the organisation’s services. The charity is entitled to GST credits for the GST in the purchase price of the car.
End of exampleIf your organisation provides light meals, such as hot or cold sandwiches, morning and afternoon tea or non-alcoholic refreshments to its volunteers it generally can claim GST credits for the GST included in such expenses.
If your organisation provides food, drink, accommodation or travel that is reasonably incidental to a volunteer’s attendance at a seminar, of at least four hours' duration, it can claim GST credits for the GST included in such expenses.
Examples: Entitled to claim
An emergency-services organisation provides sandwiches and pastries to volunteers during an operation. The organisation is entitled to claim GST credits for any GST included in the expenses incurred.
A surf lifesaving club holds an all-day training course for its volunteer lifesavers. During the day, the club provides a smorgasbord of hot and cold foods. The surf lifesaving club is entitled to claim GST credits for any GST included in the expenses incurred.
End of examplePurchasing entertainment for volunteers
Any food or drink provided in a social setting such as dinners, parties and social functions are considered entertainment.
This includes meals provided in a social setting at an in-house dining facility. An organisation cannot claim GST credits for the GST included in such entertainment expenses.
If your organisation provides entertainment to its volunteers, it generally cannot claim GST credits for the GST included in the cost of the entertainment.
Entertainment means:
- entertainment by way of food, drink or recreation
- accommodation or travel to do with providing entertainment by way of food, drink or recreation.
Example: Not entitled to claim
A charity holds an end-of-year dinner as a thank you to its volunteers. The charity is not entitled to claim GST credits for any GST included in the expenses incurred.
End of exampleSee also:
A not-for-profit organisation must be registered for GST to claim GST credits for the GST included in the price of the purchases it makes in carrying on its activities. This includes things it buys for its volunteers in carrying on its enterprise.