I have just read a blog that has brought something to light that I had not realised. The move of Wotif to Expedia now means that you do not have to pay GST on the room 'sale' and conversely cannot claim it back on the 'commission'.

Because payment is being made by 'virtual credit card' to an overseas entity, you are in effect making an 'Export Sale' (as per your BAS return) under the contract.

This also applies to rooms sold through the old Expedia, Agoda and any other overseas based OTA where a 'virtual credit card' is used. This does not apply to Booking.com, as you collect the money from the client, but remember that you can't claim back GST on the commission you pay Booking.com.

What do you think? Am I a bit slow on the uptake, or has the industry as a whole not realised this?