GST issues registers

Tourism and hospitality industry partnership

Issue 23 - Home owner and organiser responsibilities - home stays

Issue

If an Australian organising company arranges home stays, who pays the GST, the home owner or the organising company?

For source of ATO view, refer to the general application of the principles in GSTR 2012/6 - Goods and services tax: commercial residential premises.

Decision

Supplies of home stay in residential premises are usually input taxed as residential rent. No GST is charged on the rental and no input tax credits are available. Premises at which home stays are provided do not normally satisfy the characteristics of commercial residential premises (see Issue 20 - Commercial accommodation).

Generally, the Australian organising company would be making a taxable supply of its services when it arranges a home stay in Australia unless the supply is GST-free under section 38-190 of the GST Act.

References

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See Issue 22 - Commercial residential premises - cruise ships, house boats, home stays, marinas, retirement villages/nursing homes and holiday units

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Appendix 1 to GSTR 2012/6 - Goods and services tax: commercial residential premises.

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