Payment Flow – how does it all work?

We think it’s fair to say that figuring out the tax & payment flow processes behind the scenes at SpacetoCo has been our biggest challenge over the last 12 months. With the help of our awesome development team, we’ve come up with a really robust solution that ticks all the boxes from a tax & legal perspective, and also meets the challenge of providing a platform suitable for both residential and commercial Spaces.

If you require an Australian Tax Invoice for expense purposes, SpacetoCo has you covered with the payment flows below.

Residential Payment Flow (non-GST)

If you’re a Space owner, and not registered for GST, you fall under our Residential Flow for payment & tax receipts. It’s important that you declare all earnings you make as part of your tax return. The Australian Tax office has a great article on this here: https://www.ato.gov.au

As a Guest, here is what you can expect to receive:

  1. A receipt from your Host (generated by SpacetoCo on behalf of the Host). As the Host isn’t registered for GST, and isn’t a business, there will not be any GST calculation on the receipt.
  2. A tax receipt from SpacetoCo. This covers the Guest Charge (9.5%) for your booking. This is calculated on the Fixed Price set by the Host (entered at the time of listing). This receipt includes GST.

As a residential Host, here is what you can expect to receive:

  1. A tax receipt from SpacetoCo. This covers the Host Fee (5.5%) we charge you for each booking. This is calculated on your Fixed Price (entered at the time of listing). This receipt includes GST.
  2. An earnings notification from SpacetoCo. This is the amount that will land in your bank account. This is calculated by deducting your Host Fee from your Fixed Price.

For a visual on this entire flow, here is an example based on a $10 Fixed Price:

Commercial Payment Flow (GST)

If you’re a Space owner, and registered for GST, you fall under our Commercial Flow for payment & tax receipts. It’s important that you declare all earnings you make as part of your tax return. The Australian Tax office has a great article on this here: https://www.ato.gov.au

As a Guest, here is what you can expect to receive:

  1. A receipt from your Host (generated by SpacetoCo on behalf of the Host). As the Host is registered for GST, it contains all the Hosts relevant tax information including Business Name & ABN. This receipt includes GST.
  2. A tax receipt from SpacetoCo. This covers the Guest Charge (9.5%) for your booking. This is calculated on the Fixed Price set by the Host (entered at the time of listing). This receipt includes GST.

As a GST-registered Host, here is what you can expect to receive:

  1. A tax receipt from SpacetoCo. This covers the Host Fee (5.5%) we charge you for each booking. This is calculated on your Fixed Price (entered at the time of listing). This receipt includes GST.
  2. An earnings notification from SpacetoCo. This is the amount that will land in your bank account. This is calculated by deducting your Host Fee from your Fixed Price. As you are registered for GST, this amount will include GST.

Note: When entering your Fixed Price as part of listing a Space, this price must include GST. 

For a visual on this entire flow, here is an example based on a $10 Fixed Price:

In summary, if you are a Host who is registered for GST

  • the Fixed Price you enter at the time of listing includes GST
  • the receipt we generate on your behalf to the Guest, also includes GST

If at any point you have a question about Payment Flows and how it all works, please feel free to contact us here. We are always happy to help!

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2018-03-27T10:41:14+00:00 March 22nd, 2017|Hosts, Knowledge Base, Policies and Legal|