GST on Income
Tax Rates
GST Free Income – used for Membership fees, donations
GST on Income – some activities, maybe hall hire
Input Taxed – sales where GST is not payable, and
you generally can't claim GST credits for purchases relating to these sales
(e.g. Fundraising events)
BAS Excluded – used for transactions between Queensland
Scout Formations only and manual journals. Should not be used for transactions
with families, members or other external bodies.
Transaction Types
Most of the
supplies (that is the provision of Scouting to our youth members) made by the
Association will be GST free. This is
because the supplies made to Scouts such as the provision of Scouting
activities, camps, etc; is less
than 50% of the GST inclusive market value of the supply due to the Scouts Qld
being a largely volunteer organisation and therefore the value of what we
provide outweigh the costs charged.
Registration/Membership Fees – GST
Free Income
Camps – GST Free Income
Activities – GST Free Income
Donations – GST Free Income
Containers for Change – GST on Income - you
should be receiving a payment advice with each deposit; these show the amount
includes GST.
Sponsorship – if you are required to provide some type of
benefit (e.g. advertising) in return for the sponsorship then
GST on Income applies.
Fundraising – There is a choice of Input Taxed or GST on
Income. If you choose GST on Income, you can claim the GST on the fundraising expenses. If Input Taxed is chosen all the fundraising expenses should also be
input taxed.
Grants – BAS Excluded, as these are co-ordinated
through State Office. See the
Fact Sheet on Accounting for Grants
Den Hire & Campsite Fees to
External Customers – GST Free or GST on Income. If the amount charged is less
than 50% of the GST-inclusive market
value this supply may be GST Free. If you choose to make these
fees GST Free you should regularly compare the charges with similar fees in
your area.
Activities relying heavily
on third party providers – GST on Income. If you organise a Formation activity that relies
largely on external paid providers, such as bowling or cinema, and you ask
parents to reimburse the full commercial rate, you can only claim these GST
credits on the expenses if you also charge GST on the income. This is because the charge is more than 75% of the cost to supply.
Uniform & Badge Sales – GST
on Income.
How to
The easiest way to ensure that the GST is correctly
allocated is to have a general ledger account set up for each transaction type and
set the correct tax rate in the account settings in the chart of accounts.
Related Articles
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