GST Issues

Following up on David Crewes' August ITA Link Editorial and not wishing in any way to start a GST debate!An extract from an article (p.5) in the ACROD Newsletter, May/June 1998. The article relates to disability-related organisations. I'm curious to know how close it will be to the situation for other associations.---------"GST" - Warwick Ryan, Ernst & Young, Canberra... If a GST is introduced, some of the implications will be:- Organisations will have to register and get a GST number.- If non-commercial organisations were zero-rated [?], they would get a credit on input tax (i.e. be able to claim a refund on all tax paid) but be taxed on output - both products and services.- An organisation would have to separate commercial activities (e.g. sale of products) which would be subject to input GST, from non-commercial activities (e.g. sale of donated goods and fundraising) which would be zero-rated on input. You then would claim the output tax paid less the input tax credited.- Some of the unknowns as far as being subject to GST are sponsorships (probably taxable), fundraising tickets, conference venues/meals, and health equipment (probably zero-rated). Funding grants are also an unknown - in NZ these were taxed. Cost of membership of a PBI organisation [?] will most likely be zero-rated, while other memberships will be taxable.- The separating of inputs and outputs will lead to a lot more administration.----------I guess we're all going to have to wait until the package is released.CheersGrant

AAAAGGGGGGHhhhhhHadn't even thought of the implications of GST on our small community theatres.It is very scary to clubs that rely's on every cent coming in, andAcorn who can only seat 28 per night to receive revenue from.Wait and see hey!Sue> Following up on David Crewes' August ITA Link Editorial and not> wishing in any way to start a GST debate!> An extract from an article (p.5) in the ACROD Newsletter, May/June> 1998. The article relates to disability-related organisations. I'm> curious to know how close it will be to the situation for other associations.>> ---------> "GST" - Warwick Ryan, Ernst & Young, Canberra> ... If a GST is introduced, some of the implications will be:>> - Organisations will have to register and get a GST number.> - If non-commercial organisations were zero-rated [?], they would> get a credit on input tax (i.e. be able to claim a refund on all tax> paid) but be taxed on output - both products and services.> - An organisation would have to separate commercial activities> (e.g. sale of products) which would be subject to input GST, from> non-commercial activities (e.g. sale of donated goods and fundraising)> which would be zero-rated on input. You then would claim the output> tax paid less the input tax credited.> - Some of the unknowns as far as being subject to GST are sponsorships> (probably taxable), fundraising tickets, conference venues/meals,> and health equipment (probably zero-rated). Funding grants are also> an unknown - in NZ these were taxed. Cost of membership of a PBI organisation> [?] will most likely be zero-rated, while other memberships will be> taxable.> - The separating of inputs and outputs will lead to a lot more> administration.> ----------> I guess we're all going to have to wait until the package is> released.> Cheers> Grant