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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1012908495763

Date of advice: 9 November 2015

Ruling

Subject: GST registration

Question 1

Are you required to be registered for GST?

Answer

No, you are not required to be registered for GST.

Question 2

Are the sponsorships and registration fees received by you in connection with the conference that you will hold in Australia subject to GST?

Answer

No, the sponsorships and registration fees received by you in connection with the conference that you will hold in Australia are not subject to GST.

Relevant facts and circumstances

You are a non-profit organisation incorporated outside Australia.

You will host a one-time conference in Australia in 20XX.

The conference will be organised and run solely by volunteers.

Your annual revenue for the calendar years prior to and after the conference is less than $150,000. The revenue generated by the conference will be less than $150,000.

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 23-5 and

A New Tax System (Goods and Services Tax) Act 1999 section 188-10.

Reasons for decisions

Question 1

Section 23-5 of the A New Tax System (Goods and Services tax) Act 1999 (GST Act) provides that you are required to be registered for GST if:

      (a) you are carrying on an enterprise; and

      (b) your GST turnover meets the registration turnover threshold

Currently, the registration turnover threshold is $75,000 ($150,000 for a non-profit body).

You are carrying on an enterprise; thus, it must be determined whether your GST turnover meets the registration turnover threshold. As you are a non-profit body, the registration turnover threshold that applies is $150,000.

According to subsection 188-10(1) of the GST Act, your GST turnover meets the registration turnover threshold if:

      (a) your current GST turnover is at or above the turnover threshold, and the Commissioner is not satisfied that your projected GST turnover is below the turnover threshold; or

      (b) your projected GST turnover is at or above the turnover threshold.

You advised that in the calendar years prior to the conference, your annual revenue has been under $150,000 and the revenue generated by the conference will be less than $150,000. Therefore, your current GST turnover is below the threshold. Furthermore, the Commissioner is satisfied that your projected GST turnover is below the threshold as the next conference will be held outside Australia.

Your GST turnover does not meet the registration turnover threshold; thus section 23-5 of the GST Act is not satisfied. Accordingly, you are not required to be registered for GST.

Question 2

GST is payable on a taxable supply.

Section 9-5 of the GST Act states:

      You make a taxable supply 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 the indirect tax zone; and

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

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

All the requirements above must be satisfied for a supply to be a taxable supply.

You are not registered for GST; and, as provided in the response to question 1, you are not required to be registered. Paragraph 9-5(d) of the GST Act is not satisfied. Therefore, you do not make a taxable supply.

Accordingly, the sponsorships and registration fees received by you in connection with the conference are not subject to GST.

Additional information

Note that if you choose to register for GST even if your GST turnover does not meet the registration turnover threshold, the sponsorships and registration fees received in connection with the conference may be subject to GST if the other requirements of section 9-5 of the GST Act are satisfied


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