Annual Dinner Contribution

Hi If customer is asking for contribution for their annual dinner, and we contribute by giving them gift voucher is it considered deemed supply? But no GST is imposed when we purchase the gift voucher.

Asked on February 7, 2018 2018-02-07 03:15:59 Business (商家)
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1 Answer(s)

For monetary vouchers/tokens, GST is chargeable when the vouchers/tokens are redeemed rather than at the time when the voucher/token is issued. A taxable person who issues the voucher/token is not required to charge GST on the issuance unless the consideration for such issuance exceeds its monetary value. In such case, GST is charged on the excess amount of the monetary value.

Discount vouchers are non-monetary vouchers. When such vouchers are used to purchase for goods or services, GST is charged on the price after discount.

For non-monetary vouchers/tokens, GST is to be accounted at the time when the voucher/token is issued. When it is redeemed, no GST is due on the redemption.

If a non-monetary voucher/token is not redeemed due to cancellation or upon expiry, GST on the unredeemed vouchers/tokens can be claimed by the issuer provided that a credit note is issued to the holder. Adjustments are required to be made in the GST return.

Answered on February 9, 2018. 2018-02-09 01:13:56
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