Whether GST is chargeable on the full (gross) or subsidised(net) value of the services depends on whom the subsidies/grants are awarded to (i.e. the GST-registered supplier or customer).
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Subsidy for childcare services

Whether GST is chargeable on the full or subsidised childcare fees depends on whether the subsidy is awarded to the parent/child or to the GST registered childcare operator.

  1. Subsidy is awarded to the childcare operator

    If the subsidy is awarded to the GST registered childcare operator so that it can charge a lower fee for its services, GST is chargeable on the subsidised fees (i.e. net childcare fees payable after deducting the subsidies).

  2. Subsidy is awarded to the eligible parent/child

    If the subsidy is awarded to the eligible parent/child to help defray the cost of childcare fees, the GST registered childcare operator should charge and account for GST on the full childcare fee before deducting the subsidy, as that is the value of its service. This is notwithstanding that the subsidies may be credited to the childcare operator directly.

Subsidy/grant for training services

Whether GST is charged on the gross or subsidised training fees depends on whether the subsidy/grant is awarded to the eligible customer (i.e. trainee) or the GST registered training provider.

  1. Subsidy/grant is awarded to the training provider
    If the subsidy/ grant is awarded to the GST registered training provider so that it can charge the course fee at a subsidised rate, GST is chargeable on the subsidised training fees (i.e. net fees payable after deducting the subsidies).

  2. Subsidy/grant is awarded to the eligible trainee
    If the subsidy/grant is awarded to the trainee to help defray the cost of training fees, the GST registered training provider should charge and account for GST on the gross training fees before deducting the subsidies. This is notwithstanding that the subsidies/grants may be credited to the training provider directly.

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