GST Vouchers: Sale, Redemption and Expiry

Key steps and distinctions

A multi-redemption voucher (MRV) must be sold for consideration, carry a specified value and permit redemption without identifying particular goods or services. A free voucher or a paid voucher for a particular treatment or product is a non-MRV. An MRV sold at or below its specified value generally has no GST at sale; any excess is taxed. Redemption of standard-rated supplies is taxed on specified value plus additional payment. Where the supplier can establish a discounted original sale price, the permitted lower-consideration basis may apply. Expired, unredeemed standard-rated MRVs brought into income also attract GST unless tax was already accounted for at sale. An issuer-supplier unable to track redemption must instead account at sale, avoiding a second charge on redemption or expiry. For paid non-MRVs, sale and redemption form one supply, taxed at the earlier invoice or receipt; only extra payment is taxed on redemption. Free goods can trigger deemed-supply rules when the stated conditions are met, while free services are treated differently. Where issuer and merchant differ, map their contractual supplies and reimbursement separately. The accounting tax amount and an invoicing concession can differ, so retain a reconciliation.