Tax supplies and identify funding
Subsidised fees, facility rentals and employee recoveries can be taxable. Funding without a direct return benefit is generally not output-tax consideration, but cash non-business receipts affect input apportionment. Advertising supplied for sponsorship and barter sponsorship require their own analysis. Invoices must show actual tax incurred; a charity cannot apply the tax rate to all costs or claim invoices belonging to another entity.
Recover and adjust appropriately
Wholly taxable input, free activities and residual subsidised costs have different recovery outcomes. The previous financial year’s recovery rate can be used provisionally, with an annual refresh. NPOs normally make a year-end adjustment; qualifying registered charities using the specified annual-rate method have an adjustment concession and cannot later opt out of that method. Assess reverse charge on imported services and relevant low-value goods, and use the self-review checklist to identify past errors.
Official source
A concise, independent Apex Gateway guide based on the official English source, not a reproduction of the complete document. Consult the original for full conditions, exceptions and subsequent updates.
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