The Australian Taxation Office (ATO) has updated its advice on how businesses should account for and report GST on vouchers that they sell or purchase.
A voucher is defined as a token, coupon, or similar article (excluding postage stamps) that carries a stated monetary value. This includes both physical and digital gift cards, retail store vouchers, and prepaid phone cards or facilities.
There are two types of vouchers for GST purposes — face value vouchers and non-face value vouchers — and the type determines when GST must be accounted for.
A face value voucher can be redeemed for a reasonable choice of goods and services.
Example: A $50 supermarket voucher that can be used across multiple store locations.
When selling: GST is not accounted for at the time of sale (provided the sale price does not exceed the face value). GST is only accounted for when the voucher is redeemed for taxable goods or services.
When redeemed: The payment for the sale is the stated monetary value of the voucher plus any additional amount paid by the customer.
If sold above face value: GST applies immediately on the amount exceeding the face value (e.g., selling a $100 voucher for $105).
When vouchers expire or remain unredeemed: Businesses must make an increasing adjustment on their Business Activity Statement (BAS) when unredeemed voucher balances are written back to income. The adjustment is 1/11th of the unredeemed amount, reported at label 1A on the BAS.
A non-face value voucher can only be redeemed for specific goods or services.
Example: A $100 voucher for a facial treatment at a day spa.
When selling: GST must be accounted for at the time of sale, but only if the voucher is redeemable for taxable supplies.
Reporting: The GST amount should be reported on the BAS for the period in which the voucher is sold.
Exceptions: No GST is payable if the voucher is redeemable for input taxed or GST-free supplies.
When a tax agent or business purchases a voucher and uses it to acquire a taxable supply for their business, they may be entitled to claim an input tax credit:
Face value voucher: Input tax credits can be claimed in the BAS period in which the voucher is redeemed.
Non-face value voucher: Input tax credits can be claimed in the BAS period in which the voucher is purchased.
However, input tax credits cannot be claimed if the voucher relates to making input taxed supplies, or if the expense is of a private or domestic nature.
Please contact us directly if you need any help with this.
(Source: Information extract from The NTAA's October 2025 Tax Advisers' Voice)