Understanding Vouchers and GST in Your Business (October 25)

Relevant For:

Business owners and managers who sell or purchase vouchers, such as gift cards or prepaid offers.

Key Points:

• Vouchers represent a right to receive goods or services and are subject to different GST treatments.
• Face value vouchers: GST is applied when redeemed, not at sale, unless sold above face value.
• Non-face value vouchers: GST applies at the time of sale if the voucher is for taxable goods or services.
• Expired or unredeemed vouchers require an “increasing adjustment” of 1/11th on the BAS.
• GST credits for purchases depend on voucher type—face value at redemption, non-face value at purchase.
• Maintain detailed records of sales, redemptions, expiries and GST reporting for compliance.

Full Article:

When your business sells or buys vouchers, understanding how to handle GST correctly is essential.

A voucher is a document or electronic record that entitles the holder to receive goods or services. Examples include physical or digital gift cards and prepaid phone cards.