Value Marketing QLD Pty Ltd v Commissioner of State Revenue (Review and Regulation List) [2025] VCAT 34
Background
This matter concerned the door-to-door sales exemption under the Payroll Tax Act 2007.
The Commissioner assessed as a payroll tax group comprised of 2 companies:
- Value Marketing Pty Ltd (the designated group member (DGE)), and
- Value Marketing QLD Pty Ltd (the taxpayer).
The 2 companies sold vouchers for car services by a third-party mechanic, they shared a sole director, website and client, and there was an inter-company loan.
Value Marketing Pty Ltd (the DGE) failed to pay payroll tax it was liable to pay, and was then deregistered in August 2022. The taxpayer was therefore prima facie liable for the payroll tax by reason of it being grouped with Value Marketing Pty Ltd.
Issue
Whether the door-to-door sales exemption in s32(2)(d)(iii) of the Payroll Tax Act applied to exempt the payments made by Value Marketing Pty Ltd (the DGE) to contractors who were employed to sell these vouchers.
The Commissioner submitted there were 3 key requirements to be satisfied to fall within the exception:
- The services provided by the contractor involve the provision of ‘door-to-door sales’.
- The door-to-door sales are of goods as opposed to services or other things.
- The goods are sold ‘solely for domestic purposes’.
Decision
The Tribunal handed down its decision on 15 January 2025, confirming the assessments under review.
In summary, the Tribunal held the taxpayer had not discharged its onus of proof that the door-to-door sales exemption or 90-day exemption applied, and based on the interconnectedness of the companies, there was no basis for the Tribunal to exercise the discretion to de-group.
As the taxpayer also had not objected to penalty or interest, the Tribunal affirmed the assessments in their entirety.