How GST treats reimbursements

Businesses often recover travel, software, courier or out-of-pocket costs from clients and call them reimbursements. Under GST, simply calling something a reimbursement does not decide the tax treatment.

The practical issue

If the cost is part of the service you provided, it is often treated as part of the taxable value. A narrow pure-agent situation is different, but the conditions are specific.

What to review

Look at the contract, who the expense was really for, whose name the bill is in, and how you invoice it. Reimbursement treatment depends on facts, not just wording.