Qantas Hotels no longer supplying Tax Invoices

[tuppence47]

Had another email today, this time from Qantas Customer Service Operations Leader ....

...........Your feedback has been provided again to our senior management..
Please allow us this week to review this process and we will come back to you with any further updates around this.

This is getting to be longer than the Rise and Fall of the Roman Empire!!!

 

[Flyingwombat]

I just made a booking at Travelodge Hobart and got a tax invoice. It was attached to the confirmation as usual. Great booking as I used my $100 points plus voucher and also had a 3000 bonus points for next booking offer. I effectively paid $9 for the hotel.

 

[encryptededdy]

I just made a booking at Travelodge Hobart and got a tax invoice. It was attached to the confirmation as usual. Great booking as I used my $100 points plus voucher and also had a 3000 bonus points for next booking offer. I effectively paid $9 for the hotel.

I wonder if it depends if the booking goes through Expedia or that other Qantas-owned company that handles some of their Australian hotels

 

[Flyingwombat]

I wonder if it depends if the booking goes through Expedia or that other Qantas-owned company that handles some of their Australian hotels

I thought it was all Expedia? Hooroo is the Qantas and Jetstar hotels entity but I think they are the intermediary with Expedia.

 

[encryptededdy]

I thought it was all Expedia? Hooroo is the Qantas and Jetstar hotels entity but I think they are the intermediary with Expedia.

I thought Hooroo delt with some Australian hotels directly?

 

[Flyingwombat]

I thought Hooroo delt with some Australian hotels directly?

Not sure. All a bit murky… everyone no doubt charging a cut… but regardless if Qantas charge your card, they should issue tax invoice. I use them a lot with offers and vouchers and so far I’ve always received a tax invoice from them direct in booking email.

 

[AFF Editor]

We got in touch with both Qantas and Expedia to ask about this change. They both say that Expedia is behind this change.

You can read their responses here:

Qantas Hotels Stops Providing Tax Invoices

Qantas Hotels has stopped issuing tax invoice receipts for Australian hotel bookings at the request of its supplier, Expedia.

www.australianfrequentflyer.com.au

 

[Mwenenzi]

From the AFF link above

What does Expedia say?
Australian Frequent Flyer also requested comment from Expedia, which initiated this change. Expedia told us in a statement:

In Australia, we’ve streamlined Expedia Group’s bookings to maintain flexibility for travellers. With this change, we have requested that our distribution partners, including Qantas, cease issuing tax invoices on our behalf for bookings involving hotels in Australia. Partners, including Qantas, will instead provide a payment summary in the travellers’ booking confirmation. Travellers can request a tax invoice directly from the hotel in Australia during their stay.

The $ the hotel gets may not be the same as what you pay
I doubt in the hotels name (ID) appears on the credit card (I have not booked a QF hotel in a long time)

The opinion of the ATO is what matters. I would be asking/complaining to the ATO.

 

[Flyingwombat]

We got in touch with both Qantas and Expedia to ask about this change. They both say that Expedia is behind this change.

You can read their responses here:

Qantas Hotels Stops Providing Tax Invoices

Qantas Hotels has stopped issuing tax invoice receipts for Australian hotel bookings at the request of its supplier, Expedia.

www.australianfrequentflyer.com.au

I wonder if they have already worked out this is wrong and changed the process.

I made a new booking today. I paid the princely sum of $39 after using a voucher. Qantas Hotels charged my card. I have an attachment to my booking which is a tax invoice showing their ABN and the GST paid.

Qantas Group Accommodation Pty Ltd
10 Bourke Road
Mascot
NSW 2020
Australia
ABN: 32 152 774 457
To:
Reservation
Travelodge Hotel Hobart Airport, Hobart (Jul 2024 – Jul 2024)
Charges
Item Excl. GST GST Total
Booking discounted (voucher Q) -$90.91 AUD -$9.09 AUD -$100.00 AUD
Booking created $125.98 AUD $12.60 AUD $138.58 AUD

Total $35.07 AUD $3.51 AUD $38.58 AUD

 

[Chicken]

if Qantas charge your card, they should issue tax invoice.

That's right.

When you book a Uber ride, it's the independent contractor who drives you, but Uber is taking your money, so they provide you with a tax invoice.

Expedia and Qantas Hotel is breaking tax law.

We got in touch with both Qantas and Expedia to ask about this change. You can read their responses here:

Qantas Hotels Stops Providing Tax Invoices

Qantas Hotels has stopped issuing tax invoice receipts for Australian hotel bookings at the request of its supplier, Expedia.

www.australianfrequentflyer.com.au

Travellers can request a tax invoice directly from the hotel in Australia during their stay.

Do they???

Thanks to this article with confirmations from these 2 organizations, I can probably start going to ATO and ping them.

Let's look at ruling GSTR 2000/37

Examples of agency relationships

40. A travel agent agrees with a hotel company to sell accommodation to a traveller on behalf of the hotel for a commission. The travel agent is an agent and the hotel company is a principal. The travel agent is making a supply on behalf of the hotel by arranging the accommodation for the traveller at the hotel.

So this ruling applies to most scenarios we are talking about in this thread.

23. Under the basic rules about tax invoices and adjustment notes, a tax invoice for a taxable supply or an adjustment note must be issued by a principal who makes supplies through an agent.[5]

Right, so the hotel needs to issue tax invoice?

However, Subdivision 153-A provides that the principal's obligations are complied with if the agent issues tax invoices and adjustment notes on behalf of the principal for those supplies made by the principal through the agent.[6]

Right, so when would Qantas need to do this?

26. A non-resident entity may make taxable supplies, taxable importations, creditable acquisitions or creditable importations through a resident agent. The resident agent is required to be registered if the non-resident is registered or required to be registered. The provisions of Division 57 treat any GST liabilities or entitlements of the non-resident as those of the resident agent.

So Qantas hotels is the agent and they are liable, because the hotel is somewhere out there?

26A. Under Division 57, if a taxable supply is made through a resident agent any GST liabilities become liabilities of the resident agent.

So Qantas Hotel is liable here.

 

[Bundy Bear]

We got in touch with both Qantas and Expedia to ask about this change. They both say that Expedia is behind this change.

You can read their responses here:

Qantas Hotels Stops Providing Tax Invoices

Qantas Hotels has stopped issuing tax invoice receipts for Australian hotel bookings at the request of its supplier, Expedia.

www.australianfrequentflyer.com.au

Matt G i would suggest you make a follow up with Qantas and show them the relevant tax ruling.

 

[Chicken]

You can read their responses here:

Qantas Hotels Stops Providing Tax Invoices

Qantas Hotels has stopped issuing tax invoice receipts for Australian hotel bookings at the request of its supplier, Expedia.

www.australianfrequentflyer.com.au

Having this article is good, because it is systematic issue, not just once off.

I have just filed a report using the ATO "Making a tip-off" function, and attached the AFF article, and got a report number back (2410963096179). Let's see where that goes.

 

[equus]

23. Under the basic rules about tax invoices and adjustment notes, a tax invoice for a taxable supply or an adjustment note must be issued by a principal who makes supplies through an agent.[5]

Right, so the hotel needs to issue tax invoice?

Correct, this is the obligation.

However, Subdivision 153-A provides that the principal's obligations are complied with if the agent issues tax invoices and adjustment notes on behalf of the principal for those supplies made by the principal through the agent.[6]

Right, so when would Qantas need to do this?

No, Qantas does not need to do this - it is conditional - the principal's obligations are complied with IF Qantas as the agent issues the tax invoice, if not, they have to do so.

My reading of that ruling is that there is in actual fact no actual lack of compliance in what is going on here except that the Hotel as principal is obliged to issue tax invoice for the full amount paid - not what they received from the agent. They have to issue / receive invoices between themselves for the commission involved.

The actual problem is with hotels who won't / can't issue invoices when their agent won't. (A bit unfair on the hotels, but never mind).

 

[Chicken]

No, Qantas does not need to do this - it is conditional

My reading of that ruling is that there is in actual fact no actual lack of compliance in what is going on here except that the Hotel as principal is obliged to issue tax invoice for the full amount paid - not what they received from the agent. They have to issue / receive invoices between themselves for the commission involved.

The actual problem is with hotels who won't / can't issue invoices when their agent won't. (A bit unfair on the hotels, but never mind).

I think you missed a very important part:

26. A non-resident entity may make taxable supplies, taxable importations, creditable acquisitions or creditable importations through a resident agent. The resident agent is required to be registered if the non-resident is registered or required to be registered. The provisions of Division 57 treat any GST liabilities or entitlements of the non-resident as those of the resident agent.

To paraphrase the above:

A non resident entity, being the hotel out there somewhere, make supply a hotel room, thru a resident agent being Qantas hotels. Qantas hotel is required to be registered if the hotel is registered or required to be registered. The section treat any GST problem of the hotel as those of Qantas.

 

[equus]

A hotel required to issue a Tax invoice is by definition a Resident entity. An offshore hotel may be a non-resident entity, but is not making taxable supplies (as far as GST is concerned), so that point 26 does not apply to these scenarios. That point applies to offshore companies making supplies in Australia to which GST applies, and doing it via an agent. The only possible application here would be a hotel in Australia being run by a non-resident company. In any event, that provision talks about the GST liability (i.e. who has to pay it to the ATO), not the requirement to issue a tax invoice.

 

[Chicken]

A hotel required to issue a Tax invoice is by definition a Resident entity. An offshore hotel may be a non-resident entity, but is not making taxable supplies (as far as GST is concerned), so that point 26 does not apply to these scenarios.

My understanding seems different.

Taxable sales

If you are registered for GST, or required to be, the goods and services you sell in Australia are taxable, unless they are GST-free or input-taxed.

To be a taxable sale with GST in the price, a sale must be:
- for payment of some kind
- made in the course of operating your business
- connected with Australia.

Sales connected with Australia

GST applies to sales connected with Australia

Things other than goods or property
A sale of something other than goods or property is connected with Australia if either the:
- thing is done in Australia
- seller makes the sale through a business they carry on in Australia
- sale is of a right or option to purchase something that would be connected with Australia.
- purchaser of the sale is an Australian consumer.

I would like to see if ATO comes back to me.

 

[equus]

My understanding seems different.

Taxable sales

If you are registered for GST, or required to be, the goods and services you sell in Australia are taxable, unless they are GST-free or input-taxed.

To be a taxable sale with GST in the price, a sale must be:
- for payment of some kind
- made in the course of operating your business
- connected with Australia.

purchaser of the sale is an Australian consumer

You need to look at the legislation, not that ATO web site,. The bit about connected to Australia that talks about selling to Australian consumers is to do with selling things from offshore to Australians, and the Gerry Harvey whinge amendments or by direct electronic distribution platforms (Sections 84B and 84C)

The basic definition of taxable supply is:

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 9.5 Taxable supplies​

A NEW TAX SYSTEM (GOODS AND SERVICES TAX) ACT 1999 - SECT 9.5​

Taxable supplies
You make a taxable supply if:

(a) you make the supply for * consideration; and

(b) the supply is made in the course or furtherance of an * enterprise that you * carry on; and

(c) the supply is * connected with the indirect tax zone; and

(d) you are * registered, or * required to be registered.

However, the supply is not a * taxable supply to the extent that it is * GST - free or * input taxed.

GST is not applicable to sales of hotel stays in foreign hotels run by foreign companies just because the person staying is an Australian - regardless of the status of the agent that facilitated the sale.

 

[JohnK]

For what it's worth looks like Booking.com is the same.

Booked a hotel in Pattaya and they say if you receive a receipt/invoice from the hotel then use this as the tax invoice.

 

[Chicken]

For what it's worth looks like Booking.com is the same.

Booked a hotel in Pattaya and they say if you receive a receipt/invoice from the hotel then use this as the tax invoice.

I think this is right and is actually situation normal. The problem at the moment is with prepaid booking.

 

[tuppence47]

Got another email today from Qantas............

Thank you for your email. Qantas Hotels and Holidays is not itself the accommodation provider and, as set out in our terms and conditions, the goods and services are provided by the accommodation provider set out in your booking.

Qantas Hotels is acting as agent for the service provider and your agreement in respect of the accommodation is made with the accommodation provider. In these circumstances either party (supplier or its agent) can issue a tax invoice. In the case of Expedia sourced properties, Expedia has required that the hotel is to issue tax invoices in respect of the accommodation services.
May I ask whether you require a actual tax invoice, or is a simple payment receipt required in this situation?......................

On the booking confirmation email I received, all it states is Qantas, no 2nd party provider, so I am getting the feeling I am being fobbed off. Will reply to their email and advise outcome.