Qantas not Collecting GST on Hotels?

[kangarooflyer88]

Whilst checking the news today I found this story on Executive Traveller regarding Qantas Hotels:

Qantas Hotels not charging GST on hotel bookings in Australia - Qantas & Jetstar - Executive Traveller

Qantas Hotels not charging GST on hotel bookings in Australia - Executive Traveller community discussion

www.executivetraveller.com

If I understand Qantas’ argument they are claiming that GST does not need to be collected as the supplier does that. I’d be curious to see what the ATO thinks of such a practice.

-RooFlyer88

 

[encryptededdy]

I would assume the hotel still collects GST (it has to), but the breakdown of the price paid is not exposed to Qantas Hotels, and a clueless helpdesk agent has decided that means that no GST is being collected at all.

 

[Guvner]

..”our tax team”… lol.

 

[CaptJCool]

https://taxtechnical.com.au/pcg-2018-6-gst-swim-between-the-flags-guidance-on-an-inbound-tour-operator-travel-agent-acts-as-an-agent-for-the-australian-product-provider-eg-hotel-operator-so-their-profit-is-gst/

Legal Database

www.ato.gov.au

 

[kangarooflyer88]

Another aspect to consider I suppose is whether GST is even due on certain products/services. For instance if you are flying from LA to Sydney, you aren't paying GST since the trip originated outside of Australia. Similarly if I were to book a night at the Sheraton in Toronto, no GST would be payable since the local sales tax over there (i.e. HST) would be applicable.

-RooFlyer88

 

[BriarFlyer]

The tax invoice on my Australian hotel booking, downloadable from Qantas Hotels, includes GST.

 

[Lynda2475]

The tax invoice on my Australian hotel booking, downloadable from Qantas Hotels, includes GST.

This is my experience too, the email confirmation doesn't note gst but if you download the invoice or ask for a receipt post check out it does show the gst (or if overseas other tax component).

 

[CaptJCool]

All international flights are GST-free

What’s meant to happen and what happens can potentially be two different things

GST on low value imported goods | Australian Taxation Office

Information from the ATO on Australian goods and services tax (GST) on low value imported goods (A$1,000 or less).

www.ato.gov.au

Services of being an offshore booking agent are expected to levy taxes of any jurisdiction on the booking but registration obligations are tricky as they are offshore and not within the geographical boundary of Australia

I refer back to the legal opinion by the ATO in my earlier post

 

[oz_mark]

It might depend in the property. I've had this appear on an invoice before

This complex is characterised as residential apartments. The supply of a residential apartment is treated as input taxed supply that results in no GST being included in your accommodation invoice. However, all ancillary services provided will incur GST. For more information, please see ATO GST Ruling 2012/5

 

[RooFlyer]

It might depend in the property. I've had this appear on an invoice before

That was the same when my client put me up in apartments in Canada, (not Canadian GST) although I think the minimum stay was a month.

 

[CaptJCool]

It might depend in the property. I've had this appear on an invoice before

When at last years AFF In Newcastle I encountered this residential exemption
That gives at least a 10% savings !

Is this the case with AirBNB?

 

[TripTrap]

In my experience GST is listed for non-refundable bookings.
GST is paid on refundable bookings as well but I always had to contact the service team to ask for an invoice including GST.

 

[BriarFlyer]

In my experience GST is listed for non-refundable bookings.
GST is paid on refundable bookings as well but I always had to contact the service team to ask for an invoice including GST.

Interesting. I have two forward bookings at the moment, both refundable. Just checked the invoices from the Qantas Hotels booking and one includes GST, the second doesn't. The second one was part-paid using a voucher. I wonder if that's the variable?

 

[MEL_Traveller]

Whilst checking the news today I found this story on Executive Traveller regarding Qantas Hotels:

Qantas Hotels not charging GST on hotel bookings in Australia - Qantas & Jetstar - Executive Traveller

Qantas Hotels not charging GST on hotel bookings in Australia - Executive Traveller community discussion

www.executivetraveller.com

If I understand Qantas’ argument they are claiming that GST does not need to be collected as the supplier does that. I’d be curious to see what the ATO thinks of such a practice.

-RooFlyer88

Important to point out that this isn’t an article written by ET. This was a forum ‘post’ by a user, who likely didn’t understand how GST works.

My initial reading was that ET was somehow claiming QF isn’t paying GST.

 

[CaptJCool]

Important to point out that this isn’t an article written by ET. This was a forum ‘post’ by a user, who likely didn’t understand how GST works.

My initial reading was that ET was somehow claiming QF isn’t paying GST.

Nothing would surprise me anymore

If it’s tagged as Revenue Received in Advance (at 30 June was $8 billion !) then there is possibility they can hold off paying GST until the booking date arrives
Eg you pay today for Christmas Day , GST would be paid on the 21st January December monthly BAS Lodgement date

 

[Flyfrequently]

Slightly OT, but if I cancel a pre paid fully refundable Qantas Hotel stay, paid partly with Q $50 voucher, my understanding is monies refunded but the voucher is forfeited ?

 

[SYD]

Slightly OT, but if I cancel a pre paid fully refundable Qantas Hotel stay, paid partly with Q $50 voucher, my understanding is monies refunded but the voucher is forfeited ?

Yes, but you might get some points in lieu.

The better thing is to call a rebook something else.

 

[Flyfrequently]

Yes, but you might get some points in lieu.

The better thing is to call a rebook something else.

Thanks @SYD will call, only cancelling due to fracture in my foot