The taxpayer has lodged a notice of appeal to the Full Federal Court against the decision in ATS Pacific Pty Ltd v FCT [2013] FCA 341. In that case, the Federal Court held that supplies provided by a taxpayer, an Australian travel agent, to non-resident travel agents were subject to GST, as they did not fall within the scope of s 38-190 of the GST Act. The supplies were ultimately provided to non-resident tourists who travelled to Australia. However, the Court held that a margin fee charged by the taxpayer was GST-free.

[LTN 108, 6/6/13]

Catchwords from [2013] FCA 341

TAXATION – Goods and Services Tax – characterisation of supply – booking and arranging services provided by Australian company to overseas travel agents for overseas tourists in Australia – whether merely supply of booking and arranging services – whether supply of a promise that Australian providers would supply hotel rooms and other holiday services – whether margin is incidental – whether Commissioner of Taxation has discretion to refuse to refund GST