Edited version of private advice

Authorisation Number: 1051920926079

Date of advice: 11 November 2021

Ruling

Subject: GST and veterinary supplies

Question

Are you entitled to input tax credits on acquisitions of veterinary services?

Answer

Yes, to the extent that the veterinary service provider is registered for GST and issues you with a tax invoice listing the GST amount.

This ruling applies for the following periods:

Year ending 30 June 20XX to 30 June 20XX

The scheme commences on:

11 November 20XX

Relevant facts and circumstances

You are a Deductible Gift Recipient registered charity with the Australian Charities and Not-for-profits Commission (ACNC).

You are registered for goods and services tax (GST) effective from 1 July 2015.

You run a not-for-profit animal rescue that is dedicated to caring for and finding forever homes for cats and dogs.

You acquire veterinary services from veterinary services providers which are external bodies and which are an essential part of your charitable services. These services are provided to you at a discounted rate. Last year you spent $XXXX on veterinary bills.

Relevant legislative provisions

A New Tax System (Goods and Services Tax) Act 1999 section 11-5

A New Tax System (Goods and Services Tax) Act 1999 section 11-20

Reasons for decision

Under section 11-20 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) you are entitled to input tax credits for any creditable acquisition that you make.

You make a creditable acquisition under section 11-5 of the GST Act if:

a)    you acquire anything solely or partly for a creditable purpose; and

b)    the supply of the thing to you is a taxable supply; and

c)    you provide, or are liable to provide consideration for the supply; and

d)    you are registered or required to be registered.

You acquire a thing for a creditable purpose to the extent that you acquire it in carrying on an enterprise.

Note: for an entity to make a creditable acquisition all of the elements under section 11-5 of the GST Act need to be satisfied.

You run an animal shelter and the vet costs are incurred in carrying on your enterprise as an animal shelter, you provide consideration for these services and you are registered for GST.

To the extent that these supplies of veterinary services to you are by veterinary service providers that are registered for GST and that issue you with a tax invoice, you will be able to claim the input tax credits for your acquisitions as itemised in the tax invoice.