1 Are your activities of running a commercial kitchen at a specified address considered to be an enterprise in accordance with section 9-20 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) from 1 July 20XX?
1 Yes. Question 2 Are your activities of running a tourist accommodation at the specified address considered to be an enterprise in accordance with section 9-20 of the GST Act from 1 July 20XX? Answer 2 Yes. Question 3 Are the supplies related to running the commercial kitchen taxable supplies under section 9-5 of the GST Act from 1 July 20XX, if you backdate your GST registration to 1 July 20XX? Answer 3 Yes. Question 4 Are the supplies of overnight stays at the guesthouse taxable supplies under section 9-5 of the GST Act from 1 July 20XX, if you backdate your GST registration to 1 July 20XX Answer 4 No. This ruling applies for the following period : 1 July 20XX to 22 XX 20XX The scheme commenced on: 1 July 20XX
You have been registered for goods and services tax (GST) as a sole trader from a specified date. In 20XX, you and your spouse purchased a property as joint tenants at a specified address (property). The property is on xx acres of land and includes your family home in which you reside. You are a qualified chef. At the time of the purchase of the property and for several years after, you were employed at xxxx on a full-time basis as the chef manager. Due to your personal circumstances, you ceased your employment at xxxx In 20XX, you sought ways to generate income through new business ventures, related to your chef qualifications, on your property. In 20XX you purchased a transportable commercial kitchen. The commercial kitchen is xx square metres and housed in a prefabricated modular building with a cold and dry storage room. In xxxx 20XX, you applied to the relevant Council for approval to operate a commercial kitchen on the property and to construct a house to provide tourist accommodation (guesthouse) on your property.
The planning documents disclosed that the tourist accommodation to be built would be a single dwelling of xx square metres, capable of accommodating one group of x number of people at a time. The planning proposal was approved on a specified date. To run a business from the commercial kitchen it required new flooring, coving, windows, double sink, plumbing, electrical connections, a grease arrestor and a large septic system. These renovations were undertaken and upon completion you were required to pass a new food business inspection. You received approval to operate the commercial kitchen in mid-20XX. The kitchen has an engineered wastewater system that is approved to cater for more than x number of people per day. The commercial kitchen is not open to the general public or the travelling public. You have since used the commercial kitchen to provide off-site catering for x number of people at corporate functions.
You have secured bookings for your catering services. You have several events planned that will be conducted through the commercial kitchen on the property. You are also planning to apply for a 'passport' for Council approval which will allow you to cater outside of the property. Construction of the guesthouse was completed in xxxx 20XX. The guesthouse is a single dwelling. It has bedrooms, an open plan kitchen, living and dining area, an outdoor deck and car parking space. The first guests arrived at the guesthouse in xxxx 20XX. You are responsible for all management of guest stays at the guesthouse. Anyone staying at the guesthouse has the status of a guest. The guests will not live in the guesthouse and have a residence elsewhere. The rate charge is worked on a formula of length of stay x the daily rate. Features of the guesthouse available to guests include: • Linen and blankets. • Bathroom stocked with premium brand soaps and salts. • Daily cleaning and rubbish collection. • Coffee machine and in room bar selection. You have a liquor licence.
• Daily breakfast, prepared in the commercial kitchen, included for all guests. Guests do not have an option to opt out of the breakfast for a reduced price. • Ability to pre-order additional meals from the commercial kitchen with a menu available. You estimate around X% of guests use this option. • 24 hours on call for top ups of amenities and any assistance required. • Concierge services to organise activities in the area. You trade under a specific business name. You promote the guesthouse and your catering services on your website. You also advertise the accommodation on a number of tourist information websites. You manage the bookings through all portals through Lodgify. You have allocated about x acres of the property to the business which is available to the guest.
A New Tax System (Goods and Services Tax) Act 1999, section 9-5 A New Tax System (Goods and Services Tax) Act 1999, section 9-20 A New Tax System (Goods and Services Tax) Act 1999, section 11-5 A New Tax System (Goods and Services Tax) Act 1999, section 11-15 A New Tax System (Goods and Services Tax) Act 1999, section 11-20 A New Tax System (Goods and Services Tax) Act 1999, section 11-25 A New Tax System (Goods and Services Tax) Act 1999, section 38-2 A New Tax System (Goods and Services Tax) Act 1999, section 38-3 A New Tax System (Goods and Services Tax) Act 1999, section 40-35 A New Tax System (Goods and Services Tax) Act 1999 section 195-1 Question 1 Are your activities of running a commercial kitchen at the property, considered to be an enterprise in accordance with section 9-20 of t