ATO ID 2004/766: GST and religious practitioner writing a book about a particular aspect of the history of the religious institution of which they are a member and selling the book to the public
Date of decision: 2 September 2004
Business line: Indirect Tax

Issue
Under section 50-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when the entity, a religious practitioner, writes a book about a particular aspect of the history of the religious institution of which they are a member, with the intention of selling the book to the general public, is that activity treated as an activity done by their religious institution?

Decision
No, under section 50-5 of the GST Act, the activity is not treated as an activity done by their religious institution. This is because the activity is not done in pursuit of the entity's vocation as a religious practitioner.

Facts
The entity is a religious practitioner. The entity writes a book about a particular aspect of the history of the religious institution, of which the entity is a member. The entity writes the book with the intention of selling the book widely to the general public.

Reasons for decision
Summary: Section 50-5 of the GST Act provides that the activities of a religious practitioner done in pursuit of their vocation as a religious practitioner and as a member of a religious institution will be treated, for the purposes of applying the GST law, as activities done by the religious institution and not by the religious practitioner, unless the religious practitioner is acting as an employee or agent of the religious institution or another entity. The entity is a religious practitioner who writes a book about a particular aspect of the history of the religious institution, of which they are a member. Although the book is about a particular aspect of the history of the religious institution, the entity does not write the book just for members of that institution. Rather, the entity writes the book with the intention of selling it widely to the general public. While the entity is a religious practitioner of the religious institution, the writing and selling of the book is not an activity that forms part of the entity's normal activities as a religious practitioner and as such, is not an activity done in pursuit of the entity's vocation as a religious practitioner. Accordingly, under section 50-5 of the GST Act, the activity of writing a book about a particular aspect of the history of the religious institution, of which the entity is a member with the intention of selling to the general public, is an activity treated as being done by the entity and not the religious institution.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 section 50-5 section 195-1
Related ATO interpretative decisions: ATO ID 2004/765 | ATO ID 2004/767
Subject references: Goods and services tax GST special rules