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Ruling

Subject: GST and student exchange program

Questions:

Are the fees you receive from Australian students for arranging an overseas trip as part of a student exchange program subject to GST?

Are the fees you receive from overseas students for arranging a trip to Australia as part of a student exchange program subject to GST?

Answers:

No, the fees you receive from Australian students for arranging an overseas trip as part of a student exchange program is not subject to GST. Your supply is GST-free under section 38-360 of A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

Yes, the fees you receive from overseas students for arranging a trip to Australia as part of a student exchange program are subject to GST to the extent that the fees are consideration for the components of your supply of supporting services and a welcome at the airport and any fee you obtain from the student over and above the face value of the international prepaid phone card.

However, the fees are not subject to GST to the extent the fees are consideration for the components of arranging supplies of international air travel and associated airport taxes and travel insurance and for arranging for the overseas student to be accommodated and looked after by a home stay host family in Australia, to go to school with their host in Australia and for the overseas student to be picked up at the airport by the Australian host family (as well as the departure meeting if it forms a component of the fee you collect and you undertake it). These components are GST-free. Furthermore, the supply of the international prepaid phone card to the overseas student up to the face value of the international prepaid phone card is not a taxable supply.

Relevant facts and circumstances

You are registered for GST for a few years now. You are a sole trader with no employees. You are carrying on an enterprise of organising exchange programs for students between two countries. You are also a qualified and registered teacher. You are not a registered travel agent.

The program runs for a set period and is reciprocal. The program you organise is small. You take a set number of students from overseas and therefore the same number of students from Australia each year.

An Australian family host the overseas student and he/she goes to school with their exchange brother/sister, and it is then the turn of the Australian student to go overseas for a set period. It has to be a reciprocal exchange between families, as families tend to do more when they know their own child is going to go in that family. The overseas students come first to Australia for a set period and then the Australian students go overseas for the same set period and in the family of which they hosted the overseas son or daughter.

The host family is expected to welcome the student like a new son/daughter for the set period and therefore they should provide meals and treat the student as a member of their family and include him/her in any activities in which they take part/organise.

The students are voluntarily hosted by the families and schools in both countries. No accommodation or school fees are paid by the exchange student.

You advised that it is a great opportunity for the students to improve on their language skills but also to discover a different system of education.

You work with schools in Australia and overseas. These schools often do not have their own exchange programs. You do not have any written agreement with those schools but will meet with the school to discuss the exchange program and to get them to offer such a program to the families and students at the school, so that the students can have the opportunity to go to Australia or overseas and discover the country and the culture.

Every year you go overseas to the schools that are part of the program. The overseas school principal organises an evening with the interested students/parents for an exchange with an Australian student. You then hold an orientation meeting with the families and explain what is expected. You also explain 'the rules' to follow to the students that are interested such as no smoking, drinking, following the rules of the host families and school. You do the same process in the Australian schools. After that meeting, families that are interested are asked to complete an application form. You have provided a copy of this application form.

You then match the families so that the students get along and have things in common. Once you have matched families you email them a copy of the student application form which contains an agreement, so that they can decide whether or not to take part in the program. If they accept they are to sign the agreement in the application form.

The agreement provides for such things as follows:

· that the parents will have to drop and pick up their daughter/son from the airport.

· that the host family will be welcoming a student into their family and will treat him/her like one of their children, for a set period and they will pick him/her from the airport on arrival and drive him/her back to the airport on departure date.

· the parents/students take full responsibility to organise a valid passport to travel.

· the price includes: return plane ticket, staying in the host family, going to school with your host, airport taxes, insurance, an international phone card, travelling with an adult, a contact in both countries, GST. The price does not include spending money.

· the parents/students allow you to book the plane ticket on their behalf.

· you are not responsible if there are any problems with transportation (plane delayed, cancelled, accident etc).

· if necessary the parents/students need to contact the insurance company directly and to ask them the procedures to follow if they need to make an insurance claim.

· the parents/students understand that they have to follow the rules of the host family and will be going to school with their host sister/brother.

If there are any problems with the host family, health, school etc you cannot be asked for a reimbursement/compensation of the trip. It is not possible to change host family.

If they accept, the Australian student is asked to pay a set fee (inclusive of GST). The overseas student is asked to pay a set fee (inclusive of GST). The parents will normally pay you.

You then arrange and organise the overseas trip as part of the student exchange program for the student and pay for their international airplane tickets and travel insurance and other costs.

You have been paying GST on the full fee you receive from the students.

You advised that the price/fee you receive is a set amount which differs for Australian students and overseas students. The price/fee is to cover a number of components.

You advised that the price/fee includes:

· Return airplane tickets

· An adult to accompany the group of Australian students overseas (+ travelling with them) but not for the overseas students

· Airport taxes

· Going to school with your host

· Staying in the host family

· Travel insurance

· Welcome and pick up at airport by your host family.

· An international prepaid phone card

· A representative during your stay in both countries to provide a supporting role.

The international prepaid phone card is bought for the student in the relevant country they are visiting. These phone cards are only for international calls.

In addition, you advised that the price/fee includes a departure meeting to be held with the Australian students and their parents, which will include refreshments, in order to remind the students of the rules to follow such as no smoking, drinking, following the rules of the host families and overseas school and to make sure all their questions are answered. In addition, the students have a chance to meet one another as they may be from different schools. You advised that this is a necessary component of organising the overseas trip to ensure everything goes smoothly and the students understand what is expected.

You advised that you do not travel with the overseas students but meet them on arrival at the airport with the host family. For the overseas students the price usually does not cover an accompanying adult to travel with them (as they usually travel on their own in a group) nor a departure meeting. That is why the price is slightly lower. The departure meeting for the overseas student is not compulsory and you usually do not hold it. If you do carry it out, you will travel back to Australia on your own so that you and the Australian host families will meet the overseas student at the airport on arrival in Australia. You advised that this year, you went overseas to farewell the overseas students and make sure check-in went smoothly and to do a before departure meeting, to remind them of the rules to follow and make sure all their questions were answered.

Your services to find a home stay family and school and arranging the pickup at the airport by the host family is all done prior to the student travelling and arriving in Australia or overseas. There is no additional fee collected in relation to the pickup as the host family does this voluntarily. The welcome of the student is part of the supporting role carried out during the student's stay. The pickup is part of arranging the home stay host family as this is organised with the host family before the student arrives in Australia or overseas.

You normally travel with the Australian students overseas to make sure all is going smoothly and to help them if they need anything (suitcase not arriving on time, family not at airport, running late etc). If there was snow and the plane was not able to land you would deal with that kind of situation too. You stay the set period and visit the Australian students at their school. You also catch up with the school principal and teachers at that time and meet the families interested for the following year.

The price covers you providing a supporting role and you explained that you contact the students weekly during their stay and they are able to contact you by phone and email at any time if there is any issue or need some sort of support or help with the language. You will assist them so that their experience of the exchange is as enjoyable as possible. You will normally farewell the students at the airport and make sure the check-in goes smoothly.

During the set period when the overseas students are in Australia, you try to organise a catch up for instance, you organised an evening at a restaurant for the students and their Australian match and you paid for the dinner. You also take them to the markets or do small outings with smaller groups but it all depends on the year and on how much energy/time you have. You advised though that this is not included in the price as you may or may not provide this.

You advised that this year for the first time you had one Australian student who asked to cancel their trip. After discussing different options with the family and the school, you all thought it was better to cancel their trip. You refunded the family the whole amount and you are now trying to see if you can get anything back on the plane ticket and insurance. These cases are rare and you deal with them on a one on one case. You refunded the amount so that you will maintain a very good reputation, despite the agreement that was signed by the student provided that there will be no refunds.

The price is spent mainly on airline tickets and travel insurance.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 Section 9-5,

A New Tax System (Goods and Services Tax) Act 1999 Section 9-25,

A New Tax System (Goods and Services Tax) Act 1999 Section 38-355 item 1,

A New Tax System (Goods and Services Tax) Act 1999 Section 38-355 item 6,

A New Tax System (Goods and Services Tax) Act 1999 Section 38-355 item 7,

A New Tax System (Goods and Services Tax) Act 1999 Section 38-360,

A New Tax System (Goods and Services Tax) Act 1999 Subsection 38-190(1) item 2,

A New Tax System (Goods and Services Tax) Act 1999 Subsection 38-190(3) ,

A New Tax System (Goods and Services Tax) Act 1999 Division 100,

A New Tax System (Goods and Services Tax) Act 1999 Section 38-85,

A New Tax System (Goods and Services Tax) Act 1999 Section 38-90 and

Taxation Administration Act 1953 Section 105-65 Schedule 1.

Reasons for decision

Taxable supply

A supply is subject to GST if it is a taxable supply. You make a taxable supply under section 9-5 of the GST Act if:

(a) you make the supply for consideration; and

(b) the supply is made in the course or furtherance of an enterprise that you carry on; and

(c) the supply is connected with Australia; and

(d) you are registered, or required to be registered for GST.

However, the supply is not a taxable supply to the extent that it is GST-free or input taxed.

Further, subsection 9-25(5) of the GST Act provides that a supply of anything other than goods or real property is connected with Australia if:

· the thing is done in Australia; or

· the supplier makes the supply through an enterprise that the supplier carries on in Australia.

You include GST in the price of your taxable supplies and you do not include GST in the price of any input taxed or GST-free supplies you make.

Based on the information that you have provided, the character or nature of the supply you are making is one of arrangement/facilitation services. When you make your supply of arranging the overseas trip for the students as part of a student exchange program, the supply is;

· made for consideration in the form of a set fee;

· made in the course of an enterprise you carry on;

· connected with Australia under subsection 9-25(5) of the GST Act, as you make the supply through an enterprise that you carry on in Australia; and

· you are registered for GST.

Accordingly, all the requirements of a taxable supply are met and your supply will be a taxable supply unless it is GST-free or input taxed.

There are no provisions that would apply to make your supply input taxed and so we need to consider whether the supply is GST-free.

Question 1-the fees you receive from Australian students for arranging an overseas trip as part of a student exchange program

GST-free supply

When you make your supply of arranging the overseas trip for the Australian students the supply may be GST-free under Division 38 of the GST Act.

Of particular relevance to your case, is subsection 38-360 of the GST Act which provides that a supply is GST-free if:

· the supplier makes it in the course of carrying on an enterprise as a travel agent; and

· it consists of arranging for the making of a supply, the effective use or enjoyment of which is to take place outside Australia.

The term travel agent is not defined in the GST Act. However we consider, as expressed in the fact sheet, GST - travel agents and commissions and our Tourism and Hospitality Industry Partnership - issues register at issue 1 (which are available from the website at www.ato.gov.au) that a travel agent is not limited to registered travel agents but can cover other tourism enterprises, such as airlines, hotels and professional conference organisers, who arrange domestic and overseas travel on behalf of another person or persons.

Goods and services tax ruling GSTR 2009/3 (also available from the website at www.ato.gov.au) briefly discusses section 38-360 of the GST Act.

Paragraphs 162 to 165 and 170 to 171 of GSTR 2009/3 provide as follows:

162. Package tour operators (which include package tour wholesalers) arrange and/or sell domestic or overseas tour packages, typically comprising travel, transport, accommodation and events. They make the necessary arrangements for customers, either directly or indirectly, for example, through the making of bookings for airlines, accommodation and other ground arrangements. They may also enter into arrangements with other travel agents or wholesalers to sell the tour packages.

163. The Commissioner takes the view that 'travel agents', as the term is used in section 38-360, includes package tour operators that act as agents or as principals or both. The Commissioner considers that package tour operators carry on an enterprise as travel agents for the purposes of section 38-360.

164. Package tours involve a number of supplies. These supplies may include:

· travel (airline, cruise ship or train) tickets;

· accommodation bookings;

· car hire;

· reservations for special events; and

· reservations to undertake recreational and leisure activities.

165. When a package tour operator arranges travel, books accommodation, guided tours and ground transportation, and makes reservations for special events, recreation and leisure activities as part of a package tour, the package tour operator makes a facilitation supply. This supply is arranging for other supplies to be made to the customer.

170. If the facilitation supply made by a package tour operator is a supply consisting of arranging for the making of a supply, the effective use or enjoyment of which is to take place outside Australia, the facilitation supply is GST-free under section 38-360.

171. If the facilitation supply is of arranging transport of the kind covered by items 1 to 4 of the table in section 38-355, that facilitation supply is GST-free under item 7 of the table in section 38-355.

Further, paragraph 28 of GSTR 2009/3 provides as follows:

28. For example, if a facilitation supply is within one of the following provisions of the GST Act, that supply would be GST-free:

· item 7 of the table in section 38-355, which provides that the supply of arranging certain kinds of international transport of passengers, goods or insurance is GST-free; and

· section 38-360, which provides that a supply is GST-free if the supplier makes the supply in the course of carrying on an enterprise as a travel agent and the supply consists of arranging for the making of a supply, the effective use or enjoyment of which is to take place outside Australia.

We consider that the enterprise you carry on is a tourism enterprise as it involves arranging packages which include travel on behalf of students as part of a student exchange program. Although you advised that the program you organise is small, you have been carrying on this enterprise on a regular and continuous basis and have done this for a number of years. The program runs for a set period and is reciprocal. You take a set number of students from overseas and therefore a set number of students from Australia each year.

Accordingly, when you arrange an overseas trip as part of a student exchange program you are making it in the course of carrying on an enterprise as a travel agent for the purposes of paragraph 38-360(a) of the GST Act.

Based on the information that you have provided, the facilitation supply you are making is arranging for other supplies to be made to the students while overseas and the effective use or enjoyment of which is to take place outside Australia. The arrangement services you make for which you charge an overall fee relate to arranging supplies of international air travel, by booking the airline ticket and paying the associated airport taxes on behalf of the student; arranging for travel insurance on behalf of the student; arranging for an adult to travel with and accompany the Australian group overseas; arranging for the students to be accommodated and looked after by a home stay host family while overseas, for the student to go to school overseas with their host and to be welcomed and picked up at the overseas airport by the host family; arranging for an international phone card to be bought overseas and given to the student and for a representative to provide a supporting role during their stay overseas.

All the components above relate to overseas supplies which the Australian students will effectively use and enjoy overseas. In addition, you advised that you arrange a departure meeting to be held in Australia, with the Australian students and their parents, which will include refreshments, in order to remind the students of the rules to follow overseas such as no smoking, drinking, following the rules of the host families and overseas school and to make sure all their questions are answered. In addition, the students have a chance to meet one another at this meeting, as they may be from different schools before they all travel together overseas in a group. You advised that this is a necessary component of organising the overseas trip to ensure everything goes smoothly and the students understand what is expected.

Although there is a supply of food at this meeting, it is considered that the supply of food which would otherwise be taxable is ancillary to the main dominant supply of the departure meeting.

It is accepted that your arrangement of the departure meeting is a necessary component of organising the overseas trip so that the students are reminded of the rules to follow so that the supplies of home stay accommodation and overseas schooling to be made to the students are enjoyed while they are overseas and everything goes smoothly. Therefore, it is accepted that the supply you are making is arranging for other supplies to be made to the students while overseas and are all for use and enjoyment overseas and will include the departure meeting that you hold. Therefore, the arrangement of the supply of these things meets the provisions of paragraph 38-360(b) of the GST Act.

Please note, that as provided in paragraphs 28 and 171 of GSTR 2009/3 the component of the package you supply for arranging travel, taxes and insurance is also GST-free under item 7 of the table in section 38-355 of the GST Act but it is not necessary to discuss this section in detail as section 38-360 of the GST Act as discussed above has application to your case.

In conclusion, the fee that you collect from the Australian students for your facilitation/arrangement supply of arranging packages which includes an overseas trip for the Australian students as part of a student exchange program will be GST-free under section 38-360 of the GST Act.

Question 2-the fees you receive from overseas students for arranging a trip to Australia as part of a student exchange program

You advised that you collect a fee from the overseas students and that fee is to cover similar components that you arrange for the Australian students except that there is no accompanying adult to travel with the overseas group to Australia and there is usually no departure meeting that is held. Section 38-360 of the GST Act does not have application as the effective use and enjoyment of the supplies that you make take place in Australia and not overseas.

Where the price for a supply covers a number of components which are separately identifiable taxable and non-taxable parts, then the price needs to be separated into the relevant components so that you can apportion the price for the supply and work out the GST payable on the taxable part of the supply. However, if all of the parts of a supply are identifiable as being wholly taxable, or wholly non-taxable, then the price does not need to be separately itemised and you do not need to apportion the price for the supply.

A mixed supply is a supply that has to be separated or unbundled as it contains separately identifiable taxable and non-taxable parts that need to be individually recognised. Alternately, a composite supply is a supply that contains one dominant part and the supply includes something that is integral, ancillary or incidental to that part.

In your case, there are a number of separately identifiable parts or components being supplied to the overseas students in the tour package. We need to analyse the separate components of the price so that the GST implication on each of these components is determined.

Arranging supplies of international air travel and associated airport taxes and travel insurance

GST-free supply

Section 38-355 of the GST Act sets out supplies of transport and related matters that are GST-free. Item 1 in the table in section 38-355 of the GST Act (Item 1) provides that the international air transport of a passenger to, from or outside Australia is GST-free. Item 6 in the table in section 38-355 of the GST Act (item 6) provides that travel insurance is GST-free, provided the transport is also GST-free. Although you are not the supplier of the international transport and insurance you are arranging these supplies. Item 7 in the table in section 38-355 of the GST Act (item 7) applies in your circumstances and this provides that a supply of arranging international air transport as covered in item 1 and travel insurance for that international transport as covered in item 6 is GST-free.

The fact sheet on GST and international transport of passengers (available from the website at www.ato.gov.au) provides that the supply of transport of passengers to or from Australia is GST-free when the supply is:

· from the last place of departure in Australia to a destination outside Australia; or

· from a place outside Australia to the first place of arrival in Australia; or

· from a place outside Australia to the same or another place outside Australia;

· and provides that insurance on international passenger transport is GST-free, provided the transport is also GST-free.

Issue 16 - Aircraft fees and levies of the Tourism and Hospitality Industry Partnership - issues register (available from the website at www.ato.gov.au) provides that generally airport taxes are normally part of the consideration of the airline tickets. If the airport tax is for international departures, GST does not apply to these charges. In addition, as the charge only applies to international departures, it would otherwise have formed part of the consideration for a GST-free supply of international transport.

Where you arrange for international air transport and associated airport taxes and travel insurance on international passenger transport for your students the provisions of item 7 will be met and the arranging service will be GST-free.

International prepaid phone card

Goods and Services Tax Ruling GSTR 2003/5 (available from www.ato.gov.au) discusses vouchers and prepaid phone cards. Issue 13 of the Telecommunication Industry Partnership Issues Register (available from www.ato.gov.au) provides that telephone cards are typically sold through retail outlets. In some instances prepaid phone cards are treated as face value vouchers and the supply of the prepaid phone card is not a taxable supply under the special rules contained in Division 100 of the GST Act.

In your case, when you supply the international prepaid phone card to the overseas student it is not a taxable supply. However, any fee you obtain from the student over and above the face value of the international prepaid phone card voucher for your services in arranging to buy the international prepaid phone card on their behalf is subject to GST when the requirements of section 9-5 of the GST Act are met. In your case, any fee you obtain from the student over and above the face value of the international prepaid phone card will be a taxable supply as you will have met all the requirements of section 9-5 of the GST Act.

Arranging for the overseas student to stay with a host family and to go to school with their host in Australia and for the overseas student to be picked up at the airport by the Australian host family.

You advised that the facilitation/arrangement services you make for which you charge an overall fee relate to a component for arranging for the overseas student to be accommodated and looked after by a home stay host family in Australia, to go to school with their host in Australia and for the overseas student to be picked up at the airport by the Australian host family. You also advised that there is no fee collected as such for the accommodation by the home stay host family nor do the home stay host family charge the student directly. Furthermore, there are no fees collected for school fees or for the airport pickup. In these circumstances it is necessary to examine what, in substance, the supply is for.

It is considered that this component is purely in relation to your arrangement service of matching the Australian home stay host families with the overseas student which will be reciprocated with the stay of the Australian student with the overseas student's home stay host family while they are overseas. Although accommodation at the host family is one part of the supply, you are not supplying the accommodation, and as such, it is considered that the supply is primarily more of arranging services for the student to be looked after by a host family during their stay in Australia which will include an airport pickup and to attend school with their host exchange brother or sister. You are not providing an education course however you have arranged with the Australian school for the overseas student to attend with their host.

You also advised that a departure meeting for the overseas student is not compulsory and you usually do not hold it. However you advised that this year, you went overseas to farewell the overseas students and make sure check-in went smoothly and to hold a before departure meeting, in order to remind them of the rules to follow at the home stay families and Australian schools and make sure all their questions were answered. Where this departure meeting is a component of the fee that you charge and you have advised the overseas student that you will hold this then the nature of the supply is considered to be one of your services and will be considered under this category component.

Section 38-190 of the GST Act provides that certain supplies other than goods or real property are GST-free, provided they are consumed outside Australia. A supply of a thing (other than goods or real property) is GST-free under item 2 in the table in subsection 38-190(1) to the GST Act (item 2) if the supply is made to a non-resident who is not in Australia when the thing supplied is done; and either:

· the supply is neither a supply of work physically performed on goods situated in Australia when the work is done nor a supply directly connected with real property situated in Australia, or

· the non-resident acquires the thing in carrying on the non-resident's enterprise, but is not registered or required to be registered.

For a supply of services to be GST-free under Item 2, there is a precondition that the non-resident must not be in Australia in relation to the supply when it is provided and the supply must satisfy either paragraph (a) or (b) in Item 2.

Goods and Services Tax Ruling GSTR 2004/7 (also accessible from the website at www.ato.gov.au) provides guidance on when is a 'non-resident' or other 'recipient' of a supply 'not in Australia when the thing supplied is done'.

In your case, the supply of arranging services for the student to be looked after by a host family during their stay in Australia, to go to school with their host in Australia and to be picked up at the airport by the Australian host family (as well as the departure meeting if it forms a component of the fee you collect and you undertake it) is made to the non-resident parents and overseas students before the overseas students arrives in Australia. Furthermore, the supply of your services is neither the supply of work physically performed on goods situated in Australia when the work is done, nor a supply directly connected with real property situated in Australia.

Therefore, the supply of your services meets the requirements in item 2.

However, under subsection 38-190(3) of the GST Act a supply is not GST-free under Item 2 if:

· it is a supply under an agreement entered into, whether directly or indirectly, with a non-resident; and

· the supply is provided, or the agreement requires it to be provided, to another entity in Australia.

Based on the information you have provided, the supply is not excluded by subsection 38-190(3) of the GST Act from being GST-free as the arranging services are provided to the non-resident parents and overseas students before the overseas students arrive in Australia.

Therefore, the arranging services you perform for the overseas student to be looked after by a host family during their stay in Australia, to go to school with their host in Australia and for the overseas student to be picked up at the airport by the Australian host family (as well as the departure meeting if it forms a component of the fee you collect and you undertake it) will be GST-free under item 2. As such, the payment that you receive from the overseas students which relate to this arranging service is not subject to GST as this payment represents consideration for a GST-free supply.

Arranging for a representative to provide a supporting role to the overseas student during their stay in Australia and for the representative to provide a welcome at the airport to the overseas student on their arrival in Australia.

The supply of supporting services and a welcome at the airport will be excluded by subsection 38-190(3) of the GST Act from being GST-free under item 2 as the arranging services are provided to the non-resident parent under an agreement which requires you to provide these services to the overseas student in Australia.

The presence of the overseas student in Australia is integral to the performance, receipt or delivery of your supply of supporting services and welcome at the airport.

In this instance, you are making taxable supplies when you supply the above items as the supplies satisfy all of the requirements of a taxable supply (you supply them for consideration, the supply is made in the course of your business, the supply is connected with Australia and you are registered for GST).

Furthermore, the supply of the above items in your circumstances is not GST-free or input taxed under the GST legislation.

Therefore, as the supply of the above items is a taxable supply, the payment that you receive from the overseas students which represents consideration for the above items is subject to GST.

Conclusion

You must apportion the fee you collect from the overseas student between the GST-free and taxable parts of the supply. An apportionment made on a reasonable basis is acceptable.

Additional information

A GST-free supply can include such things as the supply of education courses and a supply of excursions or field trips. An education course is GST-free under section 38-85 of the GST Act. A supply of an excursion or field trip that are directly related to the curriculum of an education course and are not predominantly recreational in nature, are GST-free under section 38-90 of the GST Act. It is therefore necessary to determine if your supply of arranging an overseas trip for students as part of a student exchange program is an education courses for GST purposes and hence, whether the supply is GST-free.

Course of education

Whether you supply a course of education is a question of fact. Indicators of the supply of a course of education include such things as systematic instruction, interactive teaching (including ongoing support and guidance) and the assessment of the student's progress. The mere supply of things such as self paced software program without any instruction, support, assessment, supervision or feedback is not the supply of a course of education. Although these things may be used as learning tools, they do not satisfy the requirements of a course of education because they lack elements of interactive teaching.

Based on the information that you have provided, we consider that you are not providing a course of education as you are not providing any systematic instruction, interactive teaching (including ongoing support and guidance) and the assessment of the student's progress when you arrange an overseas trip. In addition as you are not a provider of an education course, section 38-90 of the GST Act also has no application in your case.

Correcting GST mistakes

Please note the following relevant information:

Section 105-65 of Schedule 1 to the Taxation Administration Act 1953 provides a restriction on the payment of refunds arising where transactions are incorrectly treated as taxable supplies. The Commissioner of Taxation (Commissioner) is not required to pay a refund unless he is satisfied that the supplier has reimbursed the overpaid GST to their recipients and the recipients are not registered or required to be registered for GST. Otherwise the refund would result in a windfall gain to the supplier. Further information on this issue is available in Miscellaneous Tax Ruling MT 2010/1 (which is accessible on our website at www.ato.gov.au).

The fact sheet Correcting GST Mistakes (also accessible at www.ato.gov.au) explains when a later activity statement can be used (subject to the correction and time limits in the fact sheet) to correct mistakes made on an earlier activity statement. Where the correction and time limits are not met, the original activity statement must be revised. The fact sheet also advises that where GST has been charged on a GST-free sale, the error cannot be corrected in a later activity statement until the supplier has reimbursed the GST to the recipient.

Generally, you must claim a GST refund or notify us of your entitlement within four years of the end of the tax period to which the entitlement relates. The form, Notification of entitlement to a GST refund (accessible at www.ato.gov.au), should be used if you need to notify the Commissioner of your entitlement to claim a GST refund. Further information on this issue is available in the fact sheet Time Limits on GST refunds and Miscellaneous Tax Ruling MT 2009/1 (also accessible at www.ato.gov.au).