Re: [SL] Gift Vouchers

[Paul T. <pt...@wa...>]

Ashley J Gittins wrote:
> On Mon, 23 Apr 2007, George Osvald wrote:
>   
> The actual ruling on vouchers is here if you need more detailed information:
> http://law.ato.gov.au/atolaw/view.htm?locid='DGS/GST2000D22/NAT/ATO/fpF4'&PiT=99991231235958
>
>   
Apart from legal and accounting issues, I suppose it is safe to say that 
a gift-voucher is (for the customer) as good as cash as for payment 
purposes. Only cash can be spent anywhere, where the gift-voucher is on 
a per ship or per sales-chain basis.
Why anybody would want to limit the choices of the friend receiving the 
gift is beyond me. Rational would be to give cash.

That being said, we humans are social and not rational beings, so 
exchanging a 50 dollar bill for a 50 dollar gift certificate does happen 
in the real world. Economically speaking (GST or VAT) there is NO value 
added in the transaction as I see it.
So I see no reason for charging VAT. That would be just as foolish as 
charging VAT when I change my tenner in loose change for the vending 
machine. The VAT transaction is the vending machine, and there the sale 
is VAT included.

Hopes this clarifies matters.
Paul