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GST for providing accommodation

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Business owners

Business owners are liable for GST if they provide accommodation to workers in a commercial dwelling. Commercial dwellings may be hotels, motels, farm stays, hostels or camping grounds. GST will be required whether the workers are employees or not.

The GST for supplying accommodation to the worker is for 'domestic goods and services'. The amount of GST payable should be based on the open market value of the services supplied by the worker.

Providing accommodation in a non commercial dwelling is exempt. The business owner will be able to deduct input tax on goods and services for a commercial dwelling.

Workers

Its important to understand whether a worker is an employee or an independent contractor. An employee will not be liable for GST on the services they provide to get accommodation. 

If the worker is not an employee, they will need to register for GST if they receive more than $60,000 a year for their services.