RTW Ticket and GST

[madmat777]

Hi All,

For those who get the GST back on a DONEx, if you book the first segment out of NZ on AA flight, does that mean that the whole fare is ticketed by AA? and if so I assume that there is no GST input credit available.

It seems to me that as I can get the GST credit, I am better off booking on QF.

Can anyone confirm.

Thanks

Madmat

 

[markis10]

There is no GST on international airfares purchased in Australia or even domestic legs associated with an international booking, the taxes etc are for departure and airport taxes.

 

[PineappleSkip]

the GST is normally payable in the place of supply, in your case NZ, but its not AFAIK payable for international travel there either. Cheers skip.

 

[madmat777]

Thanks guys,

I think you have confirmed what I was thinking.

I'm not talking about departure "taxes" etc, but the GST component on the purchase of a RTW ticket.

When I buy a RTW from Qantas, I get back the GST as an input credit so in essence it is nearly 10% cheaper for me in real terms when I deduct that GST from what I have to pay the government. When I buy a ticket from AA, there is no input credit since it is an international purchase.

So if you can claim the input credit in your own business, the AA (or other carrier fare) needs to be more than 10% cheaper to be worth it.

Thanks

Madmat.

 

[opusman]

As others have said in this thread, there is NO GST charged on any international airfares in Australia. If you have been claiming the GST back on international air fares you have in fact been defrauding the tax office, as GST was never charged in the first place.

 

[knasty]

Hi madmat777,

There is no GST on international travel or connections to international flights as markis10 mentioned. So you can't claim GST no matter what airline you book through as it is not a taxable supply, it's GST-free. Google "airfare gst free" and you'll see the ATO guidance towards the top of the list.

Cheers,

Knasty

 

[PineappleSkip]

I get back the GST as an input credit

Only if its a taxable supply and you have a you have a tax invoice, and I don't think QF would be sending you one on an xONE

Cheers skip

 

[madmat777]

Oh cough!

Thanks guys, I have some adjustments to put though. Surprised the accountants did not pick that up.

Very MadMat

 

[markis10]

Oh cough!

Thanks guys, I have some adjustments to put though. Surprised the accountants did not pick that up.

Very MadMat

Send them this link:

GST and international transport of passengers