ATO Interpretative Decision
ATO ID 2001/107 (Withdrawn)
Goods and Services Tax
GST and Course accreditationFOI status: may be released
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This ATO ID is withdrawn on the basis that it is a straight application of the law and does not contain an interpretative decisionThis document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Is the entity, a professional association, making a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it assesses and accredits courses held by schools and universities?
Decision
Yes, the entity is making a taxable supply under section 9-5 of the GST Act when it assesses and accredits courses held by schools and universities.
Facts
The entity is a professional association and is registered for goods and services tax (GST). The 'transaction' meets the other requirements of section 9-5 of the GST Act.
The entity assesses and accredits of courses held by schools and universities that lead to professional qualifications. The entity charges a fee to the relevant school or university for the assessment and accreditation process.
Reasons For Decision
Section 9-5 of the GST Act sets out the requirements that must be met for an entity to make a taxable supply. The existence of a 'supply' itself is an essential element in determining whether a transaction is a taxable supply under section 9-5 of the GST Act.
Section 9-10 of the GST Act discusses the meaning of the word 'supply' for GST purposes. Paragraph 9-10(2)(b) of the GST Act states that 'supply' includes a supply of services. The transactions the entity undertakes includes the assessment and accreditation of courses held by schools and universities that lead to professional qualifications. These transactions are the supply of services to the schools and universities. In return for this service, the schools and universities pay a fee.
In addition, the supply is not GST-free under section 38-110 of the GST because it is not the assessment or issue of qualifications. The supply is the assessment and accreditation of courses held by schools and universities that lead to professional qualifications
The entity is registered for GST and the transaction is a 'supply' that fulfils all of the requirements of section 9-5 of the GST Act. Furthermore, the supply is neither GST-free under Division 38 of the GST Act, nor input taxed under Division 40 of the GST Act. Therefore, the entity is making a taxable supply under section 9-5 of the GST Act.
Date of decision: 4 April 2001
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
section 9-5
section 9-10
paragraph 9-10(2)(b)
Division 38
section 38-110
Division 40
ATO ID 2001/106 ATO ID 2001/108
Keywords
Goods & services tax
GST education
GST supply
Taxable SUPPLY
ISSN: 1445-2782
| Date: | Version: | |
| 4 April 2001 | Original statement | |
| You are here | 23 December 2005 | Archived |