ATO ID 2002/16: GST and registration of a GST branch
Date of decision: 5 November 2001
Business line: Indirect Tax

Issue
Can the entity, an events management organisation, have each event that it manages registered as a GST branch under subsection 54-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act)?

Decision
No, the entity cannot have each event that it manages registered as a GST branch under subsection 54-5(1) of the GST Act.

Facts
The entity is an events management organisation. The entity manages events and conferences for various organisations and associations. The organisation of each separate event occurs at the one location, which is the entity's main business premises. Each event or conference takes place at a separate venue, and is run independently. For each event, the entity supplies its services to a new customer. The entity maintains an individual and independent set of financial accounts and records, and operates a separate bank account with its own set of signatories for each event. The signatories for any one account cannot transact for any other account. The entity is registered for goods and services tax (GST). The entity applies in the approved form, for the registration of each event (branch).

Reasons for decision
Summary: Subsection 54-5(1) of the GST Act provides that the Commissioner must register a branch of a registered entity as a GST branch if the entity makes an application in the approved form; and the Commissioner is satisfied that: The entity is registered for GST and has applied in the approved form. Therefore, it needs to be determined whether each branch maintains a separate independent system of accounting and can be separately identified by reference to the nature of the activities carried on through the branch or the location of the branch. The entity maintains an individual and independent set of financial accounts and records and operates a separate bank account with its own set of signatories for each event (branch). Therefore, it is considered that each event (branch) maintains an independent system of accounting. Next it needs to be determined whether the activities carried on by the entity are separately identifiable. In this case, the entity's enterprise consists of only managing various events. These events may be different from each other and may be conducted in different locations, independently of each other. However, this does not depart from the fact that the entity's enterprise consists of a single type of activity, which is that of managing events. Therefore, it is considered that the activities are not separately identifiable by reference to their nature. Therefore, it is not possible for the entity to have a GST branch unless the branch carries on the activity of managing events from a different location. The fact that each event is conducted at its own unique venue does not mean that the entity has multiple branches that are separately identifiable by reference to their locations. Each venue is merely the location where the individual event is held. It is considered that the location from which the entity carries on its activity of event management is its main business premises, despite the fact that each individual event may be held at a separate location. As such, none of the entity's 'branches' are separately identifiable by reference to either the nature of the activities carried on through the branch or the location of the branch. Therefore, the entity can not register each of its events as GST branches as all of the requirements in subsection 54-5(1) of the GST Act are not satisfied.

Legislative references: A New Tax System (Goods and Services Tax) Act 1999 subsection 54-5(1)
Subject references: Goods & services tax GST special rules GST branches