Goods and services tax

Goods and Services Tax ("GST") is levied on the supply of goods, services or activities, rather than directly on income. As the ultimate burden of a GST liability will be incurred by the end-user, it is important in a PPP arrangement that analysis is performed to confirm whether the contracting entity is entitled to an input tax credit for any GST liability incurred. If the contracting entity is the end-user of a taxable supply and is ultimately liable for the GST, it is important that the GST exposure is fully identified.