Can GST input tax be claimed on accommodation costs for family members of foreign employees?
Generally, GST incurred on accommodation costs relating to family members is not claimable as it is treated as a family benefit under regulation 26 of the GST (General) Regulations.
Are there exceptions where GST can still be claimed?
Yes. Where a foreign employee is entitled to a specific type of accommodation under the company’s policy and no additional cost is incurred to accommodate the family members, the GST input tax may be claimable in full.
When is GST input tax disallowed?
Where additional costs are incurred specifically for family members, such as extra beds or accommodation upgrades, the GST incurred on those additional costs is generally not claimable.
Why should businesses review accommodation arrangements carefully?
Businesses should assess accommodation arrangements and related costs carefully to ensure the correct GST treatment is applied for employee and family accommodation expenses.
