ATO has noticed businesses making errors when applying GST to vouchers.

If you’re registered for GST (or required to be), the type of vouchers you sell will determine when to account for GST.

There are two types of vouchers:

• Face value voucher: can be redeemed for a reasonable choice of goods or services.
• Non-face value voucher: can only be redeemed for specific goods and services.

When selling face value vouchers, you only account for GST when the voucher is redeemed for taxable goods and services, not at the time when the voucher is sold.

You’ll need to make an increasing adjustment on your business activity statement (BAS) when a voucher you’ve sold:

• has expired or has not been redeemed; and
• you have written back to current income any reserves for the redemption of the voucher for accounting purposes.

For non-face value vouchers, you need to account for GST when you sell the voucher, and only when the redeemable goods or services are taxable sales.

You don’t account for GST if a non-face value voucher is redeemed for input tax or GST-free sales.

Remember, if you haven’t accounted for GST correctly, you can correct the error on a later BAS or make a voluntary disclosure.

For more information, see how to account for and report GST on vouchers.

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Source: ATO