ATO Rewrites GST Issues for NFPs

The move comes after continuing consultation with Australian charities.

The ATO says the rewrite aims to clarify the principles used in the ‘market value’ and ‘cost of supply’ tests, and to address feedback from charities regarding difficulties in using the previous version of those tests.

The rewrite will help charities:
·  better understand the principles of the ‘market value’ and ‘cost of supply’ tests
·  apply those tests correctly to their individual circumstances when determining the GST status of the supplies they make.

The new ‘Part 3’ has more examples to help charities determine correctly whether the supplies they make are GST-free.

Part 3 consists of the following sections:
·  cost of supply guidelines – section A
·  market value guidelines – section B
·  benchmark market values for charities – section C
·  the GST treatment of newsletters, magazines and journals provided by charitable institutions – section D
·  the cultural and performing arts sector – section E
·  the supply of meals in boarding schools, university halls and colleges and other residential education settings – section F
·  supplies of accommodation in university residential halls or colleges and other residential educational facilities – section G
some specific questions and answers.

More information can be found on the ATO website at www.ato.gov.au