Accounting for joint venture GST
– Participating in a joint venture?
At a glance:
– Businesses or individuals that enter into joint ventures may need to report GST.
– Check if your joint venture is required to register for GST.
– Contact us if you require any clarification or advice.
Businesses forming a joint venture may elect to form a GST joint venture for GST reporting purposes.
The participants’ share of the GST will be based on the equity ratio per the Joint Venture agreement when they joined.
The GST joint venture participant’s will be required to elect a joint venture operator to undertake the administrative role of communicating with the Tax Office.
The Tax Office requires joint ventures participants to complete a GST joint venture form if any of the following occurs:
- A GST joint venture has been formed;
- A change in the GST joint venture’s operator;
- Participants have been added or removed from a GST joint venture; or
- Cancelled a GST joint venture.
For more information, click here.
– The joint venture will account for GST if the participants elected to form a GST joint venture.