Employees of a non-profit educational institution participate in a ten-pin bowling competition at a local bowling alley. The cost of the games, shoe hire and light refreshments at the bowling alley is paid for by the education department.
Is entertainment being provided?
Yes, paying for employees to play ten-pin bowling is recreational entertainment.
Does an exemption apply?
An exemption does not apply to the cost of the games, shoe hire and food and drinks. The minor benefits exemption does not apply because the entertainment is not incidental to the provision of entertainment to outsiders.
The non-profit educational institution can claim GST credits on the cost of their employees participating in the competition.