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As well as selling their products and services outright, many of your business clients will use vouchers as part of their business, the most common form being promotional or gift vouchers (particularly popular around Christmas time!). Given their wide use, a working knowledge of this area is essential particularly considering that special GST rules can apply to the supply of vouchers as compared to other supplies. This BKB will: outline the meaning of voucher for the purposes of the special rules that apply in the GST Act; provide guidelines on the treatment of vouchers to which the special rules in the GST Act apply; explain the implications on the supply and redemption of vouchers depending on whether the special rules apply and; provide a case study of the journal entries required.
