ATO Interpretative Decision
ATO ID 2004/765
Goods and services tax
GST and religious practitioner purchasing religious tracts and selling to church membersFOI status: may be released
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Under section 50-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when the entity, a religious practitioner, purchases and then sells religious tracts to members of their religion, is that activity treated as an activity done by the religious institution of which the entity is a member?
Decision
Yes, under section 50-5 of the GST Act, the activity is treated as an activity done by the religious institution of which the entity is a member, rather than being done by the entity.
Facts
The entity is a religious practitioner. The entity purchases religious tracts, which set out the doctrines and practices of the entity's religion. The entity subsequently sells the religious tracts to members of the entity's religion.
The entity sells the religious tracts during the course of conducting their activities as a religious practitioner and as a member of the religious institution. The entity does not carry out this activity as an employee or agent of the religious institution or any other entity.
Reasons for Decision
Section 50-5 of the GST Act provides that activities of a religious practitioner done in pursuit of their vocation as a religious practitioner and as a member of a religious institution will be treated, for the purposes of applying the GST law, as activities done by the religious institution and not by the religious practitioner, unless the religious practitioner is acting as an employee or agent of the religious institution or another entity.
During the course of conducting their activities as a religious practitioner, the entity purchases religious tracts and sells them to members of their religion. The religious tracts set out the doctrines and practices of the entity's religion and the purchase and sale of the tracts forms part of the normal activities of the entity's vocation as a religious practitioner. In addition, the entity is a member of a religious institution and is not an employee or agent of the institution or another entity.
Accordingly, under section 50-5 of the GST Act, the activity of purchasing religious tracts and then selling them to members of the entity's religion is treated as an activity done by the religious institution, of which the entity is a member, rather than being done by the entity.
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- a minister of religion
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- a student at an institution who is undertaking a course of instruction in the duties of a minister of religion
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- a full-time member of a religious order, or
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- a student at a college conducted solely for training persons to become members of religious orders.
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 50-5
section 195-1
ATO ID 2004/766
ATO ID 2004/767
Keywords
Goods and services tax
GST special rules
ISSN: 1445-2782