Tony Richardson operates a hotel in Perth catering for overseas travelers. The hotel offers free bus pick-up
Question:
Tony Richardson operates a hotel in Perth catering for overseas travelers. The hotel offers free bus pick-up from the airport for guests staying at the hotel. Mr Boscelli arrives from Italy and catches the bus to the hotel for an overnight stay. During his stay, Mr Boscelli purchases breakfast and asks that some food be prepared for his lunch, which he intends to eat down by the river. Mr Boscelli asks that it contain gourmet sandwiches and a bottle of wine.
When Mr Boscelli comes to check out, he only has Euros, and asks Tony if he could arrange to exchange these for Australian dollars, with which he then pays the bill. Mr Boscelli is so pleased with the service he has received that he gives Tony a tip.
Required:
Identify which of the above transactions are taxable, GST-free or input-taxed, and why. Is GST payable on the full amount of each supply? Refer to relevant legislation to support your answer.
