Goods and Services Tax Industry Issues
Tourism and Hospitality Industry Partnership

Travel agent fee for visa applications

• Please note that the PDF version is the authorised version of this ruling.
  This publication is extracted from the Tourism and Hospitality Industry Partnership - issues register. See travel agents issue 2 of that register. This publication should be read in conjunction with the related content of that register where further context is required.

This publication provides you with the following level of protection: This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953. A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you.

1. Travel agents may make visa applications for international travellers and charge a separate fee for this service.

Issue

2. What is the GST treatment of a fee received by a travel agent for arranging the processing of a visa application?

Decision

3. The service of making visa applications is GST-free. The supply is GST-free under section 38-360 because the use or enjoyment of the visa takes place outside Australia.

4. A 'visa' is essentially an endorsement made by an authorised representative of a country upon the passport of a citizen of another country, testifying that the passport has been examined and found in order, thereby permitting passage to the country making the endorsement. The travel agent is effectively arranging for the international travel of the passenger. Arranging for the issue of the passenger's visa is a component of arranging the passenger's travel outside Australia.

References