ATO Interpretative Decision
ATO ID 2001/105 (Withdrawn)
Goods and Services Tax
GST and Entry Fees Charged by Show OrganisersFOI status: may be released
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The ATO view for this issue is covered in Goods and Services Tax Ruling GSTR 2002/3 (in particular paragraphs 34-35).This 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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, an agricultural show competition organiser, making a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it receives an entry fee from each participant of the competition?
Decision
Yes, the entity is making a taxable supply under section 9-5 of the GST Act when it receives an entry fee from each participant of the competition.
Facts
The entity is registered for goods and services tax (GST) and organises competitions in Australia for the exhibition of animals or produce. It receives an entry fee from each participant that enters the competition and provides a monetary prize to the winner of the competition.
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 requirement that the supply must be for consideration is of particular relevance as the entity otherwise meets the remaining requirements of section 9-5 of the GST Act.
'Supply' is defined in paragraph 9-10(2)(e) of the GST Act to include a creation or grant of any right. The granting of the right to enter the competition would be a supply by the entity.
'Consideration' is defined in paragraph 9-15(1)(a) of the GST Act to include a payment or any act or forbearance in connection with a supply of anything. The payment of entry fee is consideration for the entity's supply of the right to enter the competition.
Therefore, the grant of the right to enter to competition is a supply for which the consideration is the payment of the entry fee.
The entity is registered for GST and the supply meets all 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.
Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
Section 9-5
Paragraph 9-10(2)(e)
Subsection 9-10(4)
Paragraph 9-15(1)(a)
Division 38
Division 40
ATO ID 2001/104 ATO ID 2001/103
Other References:
GST Primary Production-Newsletter No.5 - 04 July 2000
Keywords
Goods and Services Tax
GST primary production
GST consideration
GST supply
Taxable supply
ISSN: 1445-2782
| Date: | Version: | |
| 26 September 2000 | Original statement | |
| You are here | 18 November 2005 | Archived |