GST on commercial with charity

Discussion in 'Accounting & Tax' started by Simon Arabian, 8th Sep, 2017.

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  1. Simon Arabian

    Simon Arabian New Member

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    Hi all,

    I'll be renting my commercial unit to a charity which is currently GST registered. I can confirm they are registered as a charitable organisation and can also see that they have tax concessions, including GST.

    If I charge them for GST on the rent, will they receive the full amount back as credit from the ATO?

    Kind regards,
    Simon
     
  2. DaveM

    DaveM Well-Known Member

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    Not your concern, you charge GST based on your GST status not the lessee's.
     
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  3. Simon Arabian

    Simon Arabian New Member

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    Right, but their argument is that they don't pay GST and therefore the GST I charge will be an additional cost to them
     
  4. DaveM

    DaveM Well-Known Member

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    Do they tell everyone they buy anything off to waive the GST? Nope. They would have a process to claim back the GST incurred in their operations from the ATO I would expect.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    I have undertaken a project to renew 30 odd commercial leases for a charity, the question didn't even arise. Yes, a charity does pay gst - it's not the lessor's problem to deal with.
     
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Incorrect. All prices include GST. Its a question of if its creditable. A charity can be reg for GST and claim GST. They should know better. Jus as they pay employees and rort the tax system at taxpayer expense now they also want to double dip...Is this Hillsong ?? Gimme gimme...take take.
     
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  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    WRONG. Tax entities that are reg for GST claim it back.They are taking you for a ride Tonto.
     
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  8. Hamish Blair

    Hamish Blair Well-Known Member

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    I work for an NFP and we claim the GST paid back from the ATO