Forum

• # 116034
• Tue 12 Dec 2017 06:14 AM

I have a client that runs a gym and has personal trainers that 'rent' space from him which is how he generates income.

The clients that the personal trainers have pay the gym for their sessions which the trainers then invoice the gym for 100% of the fees. Is the fee collected by the gym to include GST as it is simply collection on behalf of which is then paid in full to another party.

The trainers aren't GST registered which is making this particularly messy if the gym is to charge GST to the clients.

Any help is appreciated.

• Regards, M Watson
• 
  Quote
  

• # 116037
• Wed 13 Dec 2017 10:18 AM

My response is that if the Client is registered for GST, then they are providing a good (rental space) to the personal trainers, so yes, they should charge GST.

If the trainers are not GST registered - do they have an ABN? If so, then the tax code to use on the bills from the personal trainers is GNR (GST - not registered); effectively no tax is collected by them, so they cannot pass it on to your client.

However, it sounds a bit strange that the trainers invoice the gym for 100% of the fees that your client gets. It is sort of washing the GST component away.

From your client's point of view, if your client is registered for GST, then definitely charge GST to the trainers.  It is up to the personal trainers that invoice your client to sort out whether they include that GST or not.

(I am interested to hear other perspectives)...

• 
  Quote
  

• # 116105
• Thu 11 Jan 2018 01:56 AM

Hi

It sounds to me that the Gym is just collecting the money from the clients as they are not recieving a fee for doing this?  If that is the case then and they are then forwarding the full amount to the personal trainer I would put the collected funds into a liability account with no GST and then forward to the Personal Trainer possibly with a list of members that have paid.  The personal trainer is then responsible for reciepting the client with applicable details and GST if registered!

The charge to the personal trainer for the rental is charged with GST if your client is registered and invoiced accordingly from your client to the personal trainer.

• 
  Quote