How is GST applied to gift card purchases and redemptions?Updated a day ago

When you purchase a gift card from us, no GST is charged on the gift card itself. You simply pay the face value – for example, $100 for a $100 gift card.

GST is only applied later when you redeem your gift card to purchase products. The GST charged will depend on the items in your order, as not all products are subject to GST.

Example:

When purchasing a gift card:

• Gift card value: $100.00
• GST on gift card: $0.00
• Total paid: $100.00

When redeeming the gift card: Let's say you use your $100 gift card to purchase items totalling $100:

• Products subject to GST (e.g., clothing): $80.00
• GST on these products (10%): $8.00
• Products not subject to GST (e.g., certain food items): $12.00
• Total order value: $100.00
• Paid with gift card: $100.00

In this example, whilst your order total is $100, this includes $8 GST that applies to the taxable items in your purchase. The gift card simply covers the total checkout amount, which may or may not include GST depending on what you're buying.

Key Points:

• Gift cards are GST-free at the point of purchase
• GST is calculated and applied when the gift card is redeemed
• The GST amount depends on the specific items being purchased
• Your gift card value covers the total checkout amount, inclusive of any applicable GST