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Edited version of your written advice
Authorisation Number: 1012901824088
Date of advice: 30 October 2015
Ruling
Subject: GST liability
Question
Whether an entity has a GST liability upon supplying a ticket to an event held by it in a hired venue.
Answer
No.
Relevant facts and circumstances
The entity is a charity in the cultural and performing arts sector. Since 1 July 2000, its annual GST turnover has been less than $150,000. The entity is not registered for GST.
It held an event in a hired venue and engaged the venue operator as an agent to sell tickets to the event. The venue operator charged a booking fee for its services of selling a ticket to the event. The booking services provided by the venue operator included the printing of the ticket. Each ticket showed the price as '$x inc-gst'.
Reasons for decision
For GST purposes, the activities done by the entity constitute an enterprise because it is a charity.
Since 1 July 2000, the entity is not registered for GST because its annual GST turnover has been less than $150,000 and it is not required to be registered for GST.
The entity held an event in a hired venue and engaged the venue operator as an agent to sell tickets to the event.
The entity and the venue operator (as principal and agent respectively) had not entered into a Subdivision 153-B arrangement under which the entity made any supply of tickets (and/or the event) to the venue operator.
At the time the venue operator (as the agent) sold to third parties tickets to the event (held by the entity), the entity was not registered for GST. Therefore, neither party can issue tax invoices for the tickets sold.
We consider that when the entity acquired the booking services from the venue operator in making supplies (sales) of tickets to third parties, it did not hold itself out that it was registered for GST in carrying on its enterprise. That is, we consider that the error made by the venue operator in stating the ticket price included GST does not create a GST liability for the entity. Therefore, we consider that the entity has no liability for GST upon supplying a ticket to the event held in the venue.
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999 paragraph 9-20(1)(e)
A New Tax System (Goods and Services Tax) Act 1999 subsection 23-10(1)
A New Tax System (Goods and Services Tax) Act 1999 subsection 23-15(2)
A New Tax System (Goods and Services Tax) Act 1999 section 25-5
A New Tax System (Goods and Services Tax) Act 1999 subparagraph 25-10(1)(b)(i)
A New Tax System (Goods and Services Tax) Act 1999 section 25-57
A New Tax System (Goods and Services Tax) Act 1999 subsection 29-70(1)
A New Tax System (Goods and Services Tax) Act 1999 section 153-15
A New Tax System (Goods and Services Tax) Act 1999 Subdivision 153-B
A New Tax System (Goods and Services Tax) Act 1999 subsection 188-10(2)