If an Body Corporate/Owners Corporation is registered, does it charge the GST on levies (administrative and sinking fund)?
ATO Position GST will apply to the administration and sinking fund. The contributions made by the owners to the Body Corporate/Owners’ Corporation fund will be consideration for the services provided by the Body Corporate/Owners’ Corporation. The supplies the Body Corporate/Owners’ Corporation makes to its members is the entry into an obligation to maintain and manage the complex in a sound condition. The goods and services that the Body Corporate/Owners’ Corporation acquire in carrying out its duties are separate supplies to the supply the Body Corporate/Owners’ Corporation is making to its members. The Body Corporate/Owners’ Corporation must remit GST on levies charged.
Related Questions
- What are the Goods and Services Tax (GST) implications of an unregistered Body Corporate/Owners Corporation with no Australian Business Number (ABN) which deals with a supplier with no ABN?
- If an Body Corporate/Owners Corporation is registered, does it charge the GST on levies (administrative and sinking fund)?
- How do you calculate the GST on levies if the Body Corporate/Owners Corporation is under the $50 000 threshold?
