ATO ID 2002/486: GST and taxi plate owner that does not provide taxi travel
Date of decision: 23 February 2000
Business line: Indirect Tax

Issue
Is the entity, a taxi plate owner, required to be registered for goods and services tax (GST) under the compulsory registration requirements in subsection 144-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it only leases out the taxi plate but does not provide taxi travel?

Decision
No, the entity is not required to be registered for GST under the compulsory registration requirements in subsection 144-5(1) of the GST Act, when it only leases out the taxi plate but does not provide taxi travel.

Facts
The entity owns taxi plates. The entity provides the taxi plates to a taxi company under a lease agreement. The taxi company attaches the plates to its vehicles. The entity does not own a taxi or a taxi driver's licence.

Reasons for decision
Summary: Subsection 144-5(1) of the GST Act provides that an entity is required to be registered if, in carrying on its enterprise, it supplies taxi travel. Subsection 144-5(2) of the GST Act further states that it does not matter whether: Taxi travel is defined in section 195-1 of the GST Act to mean 'travel that involves transporting passengers, by taxi or limousine, for fares.' The entity is only leasing out the taxi plates, it is not transporting passengers. The leasing out of taxi plates in itself does not constitute the supply of taxi travel for the purposes of subsection 144-5(1) of the GST Act. Further, the entity does not own a taxi or a taxi driver's licence and the taxi company attaches the plates to its vehicles. It is the taxi company that provides the taxi travel. Therefore, the entity is not required to be registered for GST, under the compulsory registration requirements in subsection 144-5(1) of the GST Act, when it only leases out the taxi plates but does not provide taxi travel.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 Division 23 subsection 144-5(1) subsection 144-5(2) section 195-1
Subject references: Goods and services tax GST transport GST registration Registration of taxis