GST issues registers

Tourism and hospitality industry partnership

Issue 24 - Farm stays

Issue

Do I need to aggregate the income from my farm business and my farm stay business when I calculate my turnover?

For source of ATO view, refer to GSTR 2012/6 Goods and services tax: commercial residential premises.

Decision

This depends on whether the farmer's accommodation business provides taxable accommodation in commercial residential premises or input taxed residential premises.

A farmer who operates a bed and breakfast or a farm stay in commercial residential premises works out GST turnover by aggregating the turnover from farming operations and the turnover from the accommodation business.

If the accommodation is not provided in commercial residential premises, then it is an input taxed supply of residential premises. Input taxed supplies are excluded when calculating turnover. See GSTR 2012/6 for indicators of commercial residential premises.

References

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Paragraphs 49 to 55 of Goods and Services Tax Ruling GSTR 2012/6 - Goods and services tax: commercial residential premises and paragraph 238 at Appendix 1 to this ruling.

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