GST ON ENTERTAINMENT INVOICES - VISITORS/CLIENTS
The University cannot claim GST input tax credits on client entertainment1
Invoices should be coded as follows:
Invoice Description



Refers to staff/associates consuming a meal
Refers to staff/visitors attending meetings/seminars where finger
food/drink (not alcohol) was provided & the food was incidental to
the meeting
Refers to visitors/clients consuming a meal
G/L Code
TechOne
Tax Code
Spendvision
Tax Code
2050
2051
C
C
10% GST
10% GST
2057
I
Input Tax
Example: 10 people dined at a restaurant, 2 of which were staff. The total bill was $220 inclusive of GST.
1
1
Total bill
Total persons
= average cost of meal
$220 = $22
10
2
Average cost of meal x No of staff
$22 x 2 = $44 (code “C” or “10% GST”)
$40 goes against natural account 2050, and
$4 against goes against the GST account
3
Total bill – staff value = visitors/client
$220 – $44 = $176 (code to “I” or “Input Tax”)
All $176 to be coded to Natural Account 2057
Refer to GSTR2001/3: Division 69 – denial of input tax credits