EV 1051972925144currentnon-binding advice

GST - fees and charges

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

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1 Does the Commissioner agree that for GST purposes under the proposed arrangement, Entity A will not collect fees and charges in respect of the supply of services as Principal, but do so merely as collection agent for Entity B?

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Yes. Question 2 Under the proposed arrangement, are the fees and charges collected by Entity A as collection agent for Entity B, consideration for taxable supplies made by Entity A? Answer No. Question 3 Will payments of taxes, fees and charges payable to Entity B for which Division 81 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) currently applies, continue to meet the definition of an "Australian tax" or "Australian fee or charge" when collected by Entity A as collection agent of Entity B under the proposed arrangement? Answer Yes.

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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 Division 81