GST Updates: Free Parking Exceptions and Overseas Vendor Registration Input Tax Claims

• The e-Tax guide for GST Fringe Benefits has been updated with new provisions for free parking and overseas supplier expenses
• Free parking provided to employees now has an additional exception for limited transport options, particularly in remote areas or for graveyard shift workers, effective February 19, 2025
• Businesses can avoid accounting for deemed output tax on employee parking when workplace locations have poor public transport access or require employees to work unusual hours
• Other existing parking exceptions remain, including for employees whose jobs require driving and when parking is free for the general public without reserved employee spaces
• From July 1, 2025, businesses can claim input tax on fringe benefits contracted by employees with overseas suppliers under the OVR regime, provided reimbursement occurs, expenses are recorded as business costs, and proper GST documentation is maintained

Source: ey.com

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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