GST issues registers
Tourism and hospitality industry partnershipIssue 29 - Meals supplied to staff
A restaurant may supply meals to its staff.
Issue
What is the GST treatment of meals supplied to staff before, during or after a shift?
For source of ATO view, refer to the general application of the principles in GSTR 2001/3 - Goods and services tax: GST and how it applies to supplies of fringe benefits
Decision
The supply of meals to staff will be taxable where the normal requirements of a taxable supply are satisfied. Where staff pay for the meal, the payment is consideration for a taxable supply and GST is payable. Where the meal is supplied free of charge, there is no GST supply. There may be fringe benefits tax consequences to consider.
References
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- Goods and Services Tax Ruling, GSTR 2001/3 - Goods and Services Tax: GST and how it applies to supplies of fringe benefits discusses the interaction between fringe benefits tax (FBT) and GST. See in particular paragraphs 15 to 42.
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