GST issues registers
Tourism and hospitality industry partnershipIssue 28 - Employer-provided accommodation
A hotel may provide free or discounted accommodation to staff.
Issue
If the employer provides accommodation or discounted accommodation on the premises, is GST applicable?
For source of ATO view, refer to:
- •
- GSTR 2012/6 - Goods and services tax: commercial residential premises, the application of the general principles in GSTR 2001/3 - Goods and services tax: GST and how it applies to supplies of fringe benefits.
Decision
GST may be payable where an employee makes a contribution towards the cost of accommodation provided to the employee. In such cases, fringe benefits tax implications also need to be considered.
Where an employee makes a contribution towards an accommodation type benefit, there will be no GST liability arising where the accommodation is the employee's usual place of residence, such that the benefit is a 'housing fringe benefit'.
Where the accommodation is not the employee's usual place of residence (that is, the provision of the accommodation is not a 'housing fringe benefit'), a GST liability will arise if the provision of the accommodation is a taxable supply (for example, an employee contributing towards a taxable supply of hotel accommodation).
References
- •
- See Goods and Services Tax Ruling GSTR 2001/3 - Goods and services tax: GST and how it applies to supplies of fringe benefits for information on the interaction between fringe benefits tax and GST.
- •
- See the answer to Issue 20 - Commercial accommodation and paragraphs 118 to 122 and 124 of Goods and Services Tax Ruling GSTR 2012/6 - Goods and services tax: commercial residential premises for further details on when employee accommodation is a taxable supply.
© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA
You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).