Are there GST implications when a hospital supplies its volunteers with meals?
Where the supply of the meal is not directly linked to the provision of the volunteer labour, namely there is no pre existing agreement or understanding that the volunteer will receive a meal in return for their labour the supply of the meal would not be subject to GST as there is no consideration for the supply. However, where the meal is supplied as part of an agreement or understanding the hospital has with its volunteers it is a supply for consideration in that the volunteer provides labour which is in part consideration for the meal. In this case the hospital would have to remit 1/11 of the GST inclusive market value of the meal as GST. If the organisation supplying the meal is not registered for GST, that organisation would pay GST to the supplier in relation to the inputs purchased to prepare the meal and would not charge GST. If the organisation supplying the meal is a charitable institution and the cost to the purchaser is less than 50 percent of the GST inclusive market value
