Goods and Services Tax Advice

GSTA TPP 043W

Goods and services tax: Is a client's reimbursement to a lawyer for a payment of a tax, fee, or charge (tax) that is not subject to GST consideration for a taxable supply by the lawyer if the lawyer paid the tax as an agent for the client?

• Please note that the PDF version is the authorised version of this withdrawal notice.
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Notice of Withdrawal

Goods and Services Tax Advice GSTA TPP 043 is withdrawn with effect from today.

1. GSTA TPP 043 stated that when a lawyer pays for a client's taxes, fees, or charges, the lawyer is acting as an agent for the client and these expenses are those of the client and not the lawyer. The reimbursement to the lawyer from their client is not consideration for the lawyer's taxable supply of services to the client.

2. GSTA TPP 043 is withdrawn because it is a duplication of an existing ATO view.

3. The Commissioner's view regarding the GST treatment of reimbursements by clients for taxes, fees, or charges to lawyers acting as agents, is contained in paragraphs 48 to 52 of Goods and Services Tax Ruling GSTR 2000/37 Goods and services tax ruling: agency relationships and the application of the law.

Commissioner of Taxation
4 June 2014

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Not previously issued as a draft

References

ATO references:
NO 1-5DSYUUY