TaxTMI 
TaxTMI 
One of our consultant/director is submitting his air tickets for reimbursement with GST, air tickets already attract GST. is it correct?
GST on reimbursement of air tickets
15 Jun 2018 
6 Replies 
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GST on reimbursement of air tickets: reimbursement attracts GST unless pure agent conditions are satisfied, triggering reverse charge liability.
Reimbursement of air ticket costs generally attracts GST unless the conditions for being a pure agent are met. Consultants should issue tax invoices including GST so the payer can claim input tax credit. If a director purchases a ticket and no tax invoice is issued to the payer, the payer may be liable under the reverse charge mechanism on the full ticket amount. If the ticket was booked in the payer's name and only paid initially by the director, the pure agent principle may prevent reverse charge application. (AI Summary)
Reimbursement of air ticket costs generally attracts GST unless the conditions for being a pure agent are met. Consultants should issue tax invoices including GST so the payer can claim input tax credit. If a director purchases a ticket and no tax invoice is issued to the payer, the payer may be liable under the reverse charge mechanism on the full ticket amount. If the ticket was booked in the payer's name and only paid initially by the director, the pure agent principle may prevent reverse charge application. (AI Summary)