Charities and Non-Profit Organisations
- Sales by charities are GST-free if they are below specified percentages of market value.
- Raffles and bingo conducted by charities are GST-free.
- The sale of most donated second-hand goods by a charity is GST-free.
- Fundraising dinners are subject to GST. Membership fees are subject to GST.
- Gifts and donations are not subject to GST, even though donors receive "tokens".
- Overseas aid delivered by an overseas body is not subject to GST.
- Religious services are GST-free.
- Charities will be able to claim input tax credits if they reimburse expenses incurred by volunteers.
- If you buy something for your business and later donate it to a charity, that does not give rise to a GST adjustment.
- The restrictions on input tax credits for vehicles acquired before 1 July 2002 do not apply to trucks used totally by a gift-deductible charity to collect and deliver donated goods.
- Charities may be entitled to use simplified methods of accounting where they have a mixture of taxable and GST-free sales.
- Charities can choose to adopt the cash basis of accounting even though their annual turnover is more than $1,000,000.
- Non-profit entities will be able to choose either monthly or quarterly tax periods even if they balance their accounts on a date other than 30 June.
- Charities are entitled to the special rules allowing branches to be treated as independent entities for GST purposes.
- Non-profit bodies can take advantage of the GST grouping provisions.
- A grant is treated like a gift, and is GST-free, unless it is made in return for services.
- Sponsorships would normally be subject to GST, as they are provided in return for advertising services.
- In practical terms, the pre-GST face value of vouchers issued by charities may need to be increased if the goods to be purchased are subject to GST. This may not apply to food vouchers as most food is GST-free.
- GST will be charged by registered contractors, but not employees.
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