GST Liability for Payments in Religious Practices: TCO Decision on Consideration and Taxable Supply

• Taxpayer registered for GST and carries on taxable activity
• Taxpayer is a registered charity and non-profit body
• Dispute over whether payments for participation in religious practices are subject to GST
• Taxpayer initially filed returns with GST included, later proposed adjustments which were rejected
• Dispute referred to Tax Counsel Office, which concluded Taxpayer was liable for GST on payments
• TCO considered reciprocity and direct benefits in determining if payments were subject to GST
• GST charged on supply of goods and services in course of taxable activity
• Definition of services includes anything not goods or money, religious practices fall under this definition
• No exception for services of religious nature in definition of services

Source: taxtechnical.ird.govt.nz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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