VAT and GST

Updated on July 20, 2022

I have two investment houses that I rent out as short-term lodging, but as they are investment properties, I do not have to register for GST. I market my properties on a number of lodging websites, and most of them add GST in their commissions. The Booking.com experience has always been a bit odd for me. On their invoice, they include 10 percent VAT, but when I pay them their commission, they add 10 percent GST on top of that. Can GST be added on top if VAT is already included? As far as I know, Booking.com should not be charging me GST on top of the VAT. Sincerely,

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Both VAT and GST are commonly used to describe the same thing.

The word “VAT” (value added tax) is often used in Europe, which is why online travel agencies like Booking.com prefer to refer to it as such.

From July 1, 2017, you will be charged 10% Australian GST on the commission fee because you are not registered for GST. Your commission would not be taxed.

Under the title “GST on service fees or commissions charged by facilitators,” you can discover further information regarding the sharing economy and tax.

Please call us at 13 28 66 between 8 a.m. and 6 p.m. on weekdays if you have additional queries about GST.

Working for a food delivery service

Are you an employee or a contractor if you deliver food for companies like Menulog, UberEats, or Deliveryo? We’ve compiled a list of frequently asked tax questions in the hopes that you’ll find the answers here.

This item has a number of abbreviations that you’ll come across.

The GST is a tax on goods and services (GST)

The ABN is a unique number assigned to each Australian business.

A BAS is a statement of a company’s operations.

Do I need to apply for an ABN or register for GST?

This question can be answered by determining whether you are an employee or a contractor. Our employee or contractor decision table (which opens in a new window) might help clarify the rules that apply to your particular situation.

Employees do not need to apply for an ABN or register for GST as part of their employment.

If your GST revenue is less than $75,000 and you’re a contractor, you’ll need to apply for an ABN.

If your GST turnover is more than $75,000 (or you anticipate earning more than this amount) as a contractor, you must obtain an ABN and register for GST.

If you’re not currently registered for GST, you should check each month to determine if you’re over the threshold or are likely to do so in the upcoming months. You have 21 days to register for GST if your taxable income is $75,000 or more.

How do I report GST?

As a registered GST contractor, the prices you charge for products and services must include GST.
 This opens in a new window also serves as a vehicle for reporting any GST you have collected.
Monthly, quarterly, or yearly: Your BAS is completed. When the time comes to file your taxes, we’ll give you a BAS to complete.As part of your BAS, you can also claim GST credits for business expenses.To ensure that you can pay your BAS when it is due, remember to set aside funds equal to the GST you have collected.We urge you to notify us immediately if you believe you will be unable to submit or make payment by the due date.

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How do I complete my tax return?

As an employee or as a contractor, you must disclose your income in a different place on your tax return.

If you’re a salaried employee, you should declare your income as salary and wages.

You must complete the business portion of your tax return if you’re a contractor in order to record your net earnings or losses.

What deductions can I claim?

A hefty tax burden is the last thing I need. That’s a tough one.When you file your tax return, there are steps you may take to minimize the amount of money you owe in taxes. You can, if you’d like to.prepayments can be made at any time and in any amount.PAYGI, or pay-as-you-go income tax instalments, is a convenient way to pay your taxes.
Opens in a new tab or window for you After that, we’ll use your estimated earnings to generate periodic PAYGI activity statements for you. As part of your tax return, you might be enrolled in the program.If you get a bill after filing your tax return, we can assist you in paying it. You can use our online services in myGov to form a payment plan, or you can contact us for personalized advice and help.

I’m on a working holiday maker visa. Do I need to lodge a tax return?

Employers withhold 15% of wages for income tax if you work as an employee.

The amount of money you make determines whether or not you have to file a tax return. All of the following are exempt from submitting a tax return or non-lodgment advice:

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Worker’s compensation was the sole source of income for you while on vacation.

less than $37,001 (in 2019-20 and earlier years) or $45,001 was the sum of your taxable income for the tax year (from 2020-21 and later income years).

It doesn’t matter how much money you make, you must file a tax return as long as you have an ABN.