• Legal database
Legal database

ATO Interpretative Decision

ATO ID 2002/708 (Withdrawn)

Goods and Services Tax

GST and registration requirements for taxi operators
FOI status: may be released
  • This ATO ID is withdrawn as it is superseded by NAT 3014 - GST for small business.
    This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 taxi operator that supplies taxi travel, required to be registered for goods and services tax (GST) under section 144-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), even though its annual turnover is below the registration turnover threshold?

Decision

Yes, the entity is required to be registered for GST under section 144-5 of the GST Act, even though its annual turnover is below the registration turnover threshold.

Facts

The entity is a taxi operator that supplies taxi travel. The entity does not operate a taxi as an employee. The entity is not registered for GST.

The entity's annual turnover is below the registration turnover threshold.

Reasons for Decision

Division 144 of the GST Act contains a special registration rule for suppliers of taxi travel. It provides that suppliers of taxi travel are required to be registered regardless of their annual turnover.

Under section 144-5 of the GST Act, an entity is required to be registered if, in carrying on an enterprise, it supplies taxi travel. It does not matter whether its annual turnover meets the registration turnover threshold or in carrying on an enterprise, it makes other supplies besides supplies of taxi travel. This section has effect despite section 23-5 of the GST Act, which provides that an entity is required to be registered if it is carrying on an enterprise and its annual turnover meets the registration turnover threshold (subsection 144-5(3) of the GST Act).

Accordingly, the entity is required to be registered for GST under section 144-5 of GST Act, even though its annual turnover is below the registration turnover threshold.

[Note: Subsection 23-15(1) of the GST Act provides that the registration turnover threshold is $50 000, unless the entity is a non-profit body].

Date of decision:  08 March 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
   section 23-5
   Division 144
   section 144-5
   section 144-5(3)

Related ATO Interpretative Decisions
ATO ID 2001/700

Keywords
Goods & services tax
GST special rules
Registration of taxis
GST registration
GST annual turnover
GST turnover threshold

Business Line:  GST

Date of publication:  31 July 2002

ISSN: 1445-2782

history
  Date: Version:
  8 March 2001 Original statement
You are here 15 June 2007 Archived

Back to top