Private ruling: GST on the supply of short-term accommodation
Date of advice: 19 October 2022
Published: 9 January 2023
Ruling period: DDMMYYYY
Date scheme commenced: DDMMYYYY

Ruling: Q1: Are you liable to pay GST, under section 9-40 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), on the supply of short term accommodation provided at the specified X address (X Property)? | A1: No. The partnership is not liable to pay GST under section 9-40 of the GST Act for the supply as all the requirements for making a taxable supply under section 9-5 of the GST Act were not satisfied. This is because the Commissioner has determined that the partnership's supply of short-term residential accommodation is input taxed under section 40-35 of the GST Act.

Relevant facts and circumstances: You operate an enterprise in the form of a partnership that is of providing short-term accommodation to third parties. You provide this accommodation from a property situated at the specified address (X Property) which you own and live in. You have not been registered for GST since DDMMYYYY, however you have held an ABN since DDMMYYYY. The annual gross income for the year ending DDMMYYYY was $X. The previous years' annual gross rental income before DDMMYYYY was less than $X. The residence on X Property consists of X bedrooms and X bathrooms. • X bedrooms are for guests. • X bedrooms are reserved for you. • X bathrooms are for guests. • X bathroom is reserved for you. X Property is advertised through: • Y (Y.com.au); • YA (YA.com.au); and • word of mouth. There is no minimum stay. Most guests stay between X to X nights. You do not provide accommodation to separate unrelated parties but only ever to a single individual or a single group. You charge accommodation fees to guests for staying at the Property. The fee fluctuates depending on various factors such as seasonal demands, length of stay, number of guests, and maintaining competitive pricing with other accommodation providers. The cost of utilities (e.g. electricity, gas and Wi-Fi) are recouped through the accommodation fees charged to guests. There is no reception located on X Property however you live on-site. Guests are not required to complete a registration form upon arrival. Any communication between you and your guests are carried out by phone, text or email. There is no check in procedure for guests. Guests are given directions to X Property and gain access by a key placed in a key safe with a code. There is no signage to notify potential guests that short-term accommodation is offered at X Property. Neither meals nor food services are provided to the guests. X Property has a kitchen however this is not available for guests. The kitchen is exclusively used by you. Guests have access to a kettle, toaster and microwave, and may access a small galley kitchen if required. There are no other amenities offered to guests during their stay on X Property. Towels and other items (e.g. bath mats, hand towels, tea towels, sheets, pillow cases, tea/coffee, toilet paper) are only replaced upon requests.

Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 section 9-5 | A New Tax System (Goods and Services Tax) Act 1999 section 9-40 | A New Tax System (Goods and Services Tax) Act 1999 section 23-5 | A New Tax System (Goods and Services Tax) Act 1999 section 40-35 | 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 | A New Tax System (Goods and Services Tax) Act 1999 section 195-1