Issue
Is the entity, a travel agent, making a GST-free supply under section 38-360 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it organises an overseas conference for an Australian resident?
Decision
Yes, the entity is making a GST-free supply under section 38-360 of the GST Act when it organises an overseas conference for an Australian resident.
Facts
The entity is a travel agent. In this case, the entity organises a client's overseas conference. The client is an Australian resident. The entity receives a fee for these services.
The entity is registered for goods and services tax (GST). The supply by the entity is made in the course of its enterprise as a travel agent.
Reasons for Decision
Section 38-360 of the GST Act provides that a supply is GST-free if: • an entity makes it in the course of carrying on an enterprise as a travel agent; and • it consists of arranging for the making of a supply, the effective use or enjoyment of which is to take place outside Australia.
In this case, the entity is conducting an enterprise as a travel agent and it is making the supply in the course of that enterprise. In addition, the entity's supply is the arrangement of a conference that will take place outside Australia. As such, the requirements of section 38-360 of the GST Act are satisfied.
Therefore, the entity is making a GST-free supply under section 38-360 of the GST Act when it organises an overseas conference for an Australian resident.