Edited version of private advice

Authorisation Number: 1051725509081

Date of advice: 23 July 2020

Ruling

Subject: GST and a camp event

Question

Is the supply of a youth camp event involving the supply of accommodation, prepared meals and lectures by you to attendees a taxable supply on which goods and services tax (GST) is payable under section 9-5 of the A New Tax (System Goods and Services Tax) Act 1999 (GST Act)?

Answer

Yes, the supply of a youth camp involving the supply of accommodation, prepared meals and lectures by you is a taxable supply under section 9-5 of the GST Act on which GST is payable.

Relevant facts and circumstances

You are a not for profit organisation (NFP) registered for GST.

You are not registered as a religious institution with the Australian Charities and not for profit Commission (ACNC). You are not an endorsed charity registered for GST concessions.

You will make supplies of three camps for young people to attend camp as part of a religious event.

Attendees pay a single fee to attend the camp.

The fee paid by attendees covers the supply of the venue (accommodation), meals (food) prepared by your volunteer cooks, and lectures from speakers.

You hire the venue and buy food from a third-party owner/supplier to supply accommodation and prepared meals to attendees in your own right.

Relevant legislative provisions

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

Reasons for decision

You must pay the GST payable on any taxable supply you make. A supply is a taxable supply pursuant to section 9-5 of the (GST Act) if:

·         you make the supply for consideration

·         the supply is made in the course or furtherance of an enterprise that you carry on

·         the supply is connected with the indirect tax zone, and

·         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. Here, you are registered for GST and will make supplies of a camp for consideration (camp fee) in carrying on your enterprise in Australia. Unless the camp comes within the definition of a GST-free or input taxed supply to some extent it will satisfy the requirements of a taxable supply on which GST is payable.

The first step is to consider whether the supply of the camp event is to any extent a GST-free or input taxed supply.

Is the supply of the camp event an input taxed supply to some extent?

Division 40 of the GST Act sets out those supplies that are input taxed. If a supply is input taxed, then:

·         no GST is payable on the supply and

·         there is no entitlement to an input tax credit (GST credit) for anything acquired

An example of an input taxed supply are those made under the GST concession provision in subsection 40-160(1) of the GST Act. Under this GST concession provision an endorsed charity, a gift deductible entity or a government school can choose to have all supplies that it makes in connection with a fund-raising event treated as input taxed where certain requirements are met. On the facts provided you are not an endorsed charity, gift deductible entity or a government school and as such this GST concession provision does not apply in your current circumstances.

Is the supply of the youth camp event a GST-free supply to some extent?

Division 38 of the GST Act sets out the supplies that are GST-free. If a supply is GST-free then:

·         no GST is payable on the supply

·         an entitlement to a GST credit for anything acquired or imported to make the supply is not affected.

For example, supplies of education and basic food items are GST-free supplies. Relevantly, the supply of religious services supplied by an ACNC registered religious institution which are integral to the practice of religions may be GST-free under section 38-220 of the GST Act. Here you are not an ACNC registered religious institution nor is there any indication the youth camp event provides to some extent services (that is teachings) integral to the practice of a religion. On that basis section 38-220 of the GST Act does not apply in your current circumstances.

Goods and services tax (GST) concessions are available to NFP organisations and additional GST concessions are available to:

·         ACNC registered charities that are endorsed to access GST charity concessions

·         gift deductible entities

·         government schools.

For GST purposes:

·         an endorsed charity is a charity that is an ACNC registered charity, has an ABN and is endorsed by us as a charity

·         a gift deductible entity is an entity that can receive tax-deductible gifts or contributions.

The Australian Taxation Office Tax Office (ATO) provides information on those GST Concessions available to NFP organisations (NFP GST Concessions) and those additional GST concessions available to endorsed charities, gift deductible entities and government schools (additional GST concessions) in its publication entitled 'GST concessions' available on the ATO website at

ato.gov.au/Non-profit/Your-organisation/GST/GST-concessions/

An additional GST Concession such as the non-commercial activities of an endorsed charity, gift deductible entity or government school may be GST-free under section 38-250 of the GST Act.

On the facts, provided you are not an endorsed charity, a gift deductible entity or a government school and as such you will not be entitled to apply the additional GST concession that apply to such types of entities.

Conclusion

As the supply of the camp event including the supply of the accommodation, prepared meals and lectures are not to any extent GST-free or input taxed supplies and the supply otherwise meets the requirements of a taxable supply under section 9-5 of the GST Act, GST is payable on your supply of the camp event.