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Re: [SL] Gift Vouchers
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From: George O. <geo...@ya...> - 2007-04-23 23:28:52
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On Tuesday 24 April 2007, Roy Nicholl wrote: > George, > > As I indicated in my post on Friday, and others expressed much more > eloquently, gift cards/vouchers and the like are simply a means of > 'capturing' a future sale ... you trade a voucher for a $20 bill. > This puts the $20 bill in your bank account, but also puts a > liability against your books as the voucher/gift card can be redeemed > at some future point in exchange for goods or services provided by > the business. If you want, you can think of the voucher as a > contract for the future delivery of a good or service ... but it is > not a sale. > > There is no sale until the voucher is redeemed ... so no GST/HST (or > any other VAT) to be remitted. If you are issuing vouchers that > have an expiration, then there will be some additional accounting to > remove the liability when the voucher expires (mechanically this is > quite similar to what happens to a corporation when stock options > expire), but there will not be any VAT to remit in this instance. > > Roy > > On 23-Apr-2007, at 11:41, George Osvald wrote: > > On Monday 23 April 2007, Paul Tammes wrote: > >> 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. > > > > Actually yes that is a pretty good explanation/comparison. Thank > > you. Now I > > have to figure out how to track them. I will be able to see how > > much of the > > gift vouchers' value has been redeemed but how do I know which > > ones? I could > > search for the voucher number presented to my by the cutomer and > > then either > > re-post the original invoice with a note attached to it (no good) > > or I could > > create a new invoice with the same number as the voucher number for > > the goods > > purchased. > > Actually could I sell vouchers as normal tax invoices (with GST) > > and then if > > they are redeemed create a new invoice with the same number and a > > negative > > amount to the value of the voucher? (plus anything extra) If they > > are not > > redeemed then I would simply keep them as sales. I understand this now Roy but I am still looking for an easy way how to track individual vouchers. By looking at a liability account I will see how much has been given away/redeemed. I still need to know which voucher has been redeemed. At this stage giving the sale the same invoice number as the voucher is probably the way. I would have to close all vouchers within a financial year though. > >> --------------------------------------------------------------------- > >> ---- > >> This SF.net email is sponsored by DB2 Express > >> Download DB2 Express C - the FREE version of DB2 express and take > >> control of your XML. No limits. Just data. Click to get it now. > >> http://sourceforge.net/powerbar/db2/ > >> _______________________________________________ > >> sql-ledger-users mailing list > >> sql...@li... > >> https://lists.sourceforge.net/lists/listinfo/sql-ledger-users > > > > -- > > George > > AUSTRALIA > > http://www.okstudio.com.au > > > > ---------------------------------------------------------------------- > > --- > > This SF.net email is sponsored by DB2 Express > > Download DB2 Express C - the FREE version of DB2 express and take > > control of your XML. No limits. Just data. Click to get it now. > > http://sourceforge.net/powerbar/db2/ > > _______________________________________________ > > sql-ledger-users mailing list > > sql...@li... > > https://lists.sourceforge.net/lists/listinfo/sql-ledger-users > > ------------------------------------------------------------------------- > This SF.net email is sponsored by DB2 Express > Download DB2 Express C - the FREE version of DB2 express and take > control of your XML. No limits. Just data. Click to get it now. > http://sourceforge.net/powerbar/db2/ > _______________________________________________ > sql-ledger-users mailing list > sql...@li... > https://lists.sourceforge.net/lists/listinfo/sql-ledger-users -- George AUSTRALIA http://www.okstudio.com.au |
