Private ruling: GST turnover
Date of advice: 24 September 2019
Published: November 2019
Ruling period: 24 September 20XX onwards

Ruling: Q1: Are the amounts that you receive from your clients for the payments you make on their behalf included in your GST turnover? | A1: No. The amounts that you receive from your clients for the payments on their behalf are not included in your GST turnover.

Relevant facts and circumstances: You are registered for GST. You pay fees and charges to a government authority on behalf of your clients. For ease of payment, you have a direct debit account set up with the government authority. You then invoice your clients for the amounts that you paid. The relevant documents including payment receipts issued by the government authority are in the name of your clients rather than in your name.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 188-15 | A New Tax System (Goods and Services Tax) Act 1999 section 188-20

Reasons for decision: Summary: Sections 188-15 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) provides that your current GST turnover at a time during a particular month is the sum of the values of all the supplies that you have made, or are likely to make, during the 12 months ending at the end of that month. Section 188-20 of the GST Act provides that your projected GST turnover at a time during a particular month is the sum of the values of all the supplies that you have made, or are like to make, during that month and the next 11 months. For the purpose of calculating your GST turnover in accordance with sections 188-15 and 188-20 of the GST Act, it must be determined whether the amounts that you receive from your clients are consideration for supplies that you make. You advised that you pay the fees and charges to a government authority on behalf of your clients. The payments come from your own account which is used in your direct debit arrangement with the government authority. The relevant documents including payment receipts issued by the government authority are in the name of your clients rather than in your name. Based on the information above, the amounts that you receive from your clients are not consideration for supplies that you make. When you invoice your clients for the fees and charges paid to the government authority, you are merely seeking reimbursement of the payments that you make on their behalf. Accordingly, the amounts that you receive from your clients for the fees and charges that you paid to the government authority on their behalf are not included in your GST turnover.