2001-sr-gst-tokens-stamps-vouchers.doc

2001-sr-gst-tokens-stamps-vouchers.doc - 9 April 2001...

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9 April 2001 Special report from the Policy Advice Division of Inland Revenue GST treatment of tokens, stamps and vouchers – amendments to sections 5(11D) to 5(11I) of the Goods and Services Tax Act 1985 The Taxation (Beneficiary Income of Minors, Services-Related Payments and Remedial Matters) Act 2001 contains amendments that affect sections 5(11D) to 5(11I) of the Goods and Services Tax Act 1985 (the GST Act). The sections apply to transactions involving the supply of tokens, stamps or vouchers. The amendments: Remove the potential for transactions involving the supply of tokens, stamps or vouchers to be taxed twice. Clarify that “redemption” does not include redemption of a token, stamp or voucher for money. Extend the “not practical” requirement to situations where the issuer of a token, stamp or voucher and the supplier of the goods and services are the same person. The amendments apply from 10 October 2000. Reasons for change Sections 5(11D) to 5(11I), enacted in the Taxation (GST and Miscellaneous Provisions) Act 2000, replaced sections 10(16) to 10(17A) in relation to supplies of tokens, stamps and vouchers. Before the rules were introduced a supply in relation to a token, stamp or voucher was generally recognised, if there was no face value at the time of issue, or, if there was a face value at the time of redemption. Under the new rules the supply of a token, stamp or voucher (regardless of whether it has a face value or not) is recognised at the time the token, stamp or voucher is issued. In relation to tokens, stamps or vouchers with a face value, where it is not practical to recognise the supply on issue GST, may be recognised when the token, stamp or voucher is redeemed for goods and services. The changes removed difficulties with the GST treatment of progressively redeemed tokens, stamps or vouchers and aligned the treatment of tokens, stamps or vouchers with the GST time of supply rules.
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  • Summer '17
  • allen dasu
  • voucher, INDUSTRY ASSOCIATION, Retailer One

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