A while ago I created the Australian GST Calculator to make it easier to determine GST, or add GST. Rounding can be an issue with GST.
Today however, I noticed a very unusual situation that I'd never seen, or thought about before. According to the Coles site, Coles receipts, which are clearly marked at tax invoices, also display a disclaimer they are not valid tax invoices, if Flybuy points are used. Coles provides a GST Calculator specifically for calculating the actual GST when you use Flybuy points.
https://www.coles.com.au/customer-service/gst-calculator
Looking at the examples provided, it appears you need to apportion the Flybuy point saving in proportionally to both the tax example and taxed items. In the first example on the link provided the total receipt is for $79.99, the Flybuys discount is $10, the GST on the receipt is $6.40 and the tax free item is $9.55.
The $10 as a proportion of $79.99 is 0.125. Therefore the GST needs to be reduced by 0.125 or $0.80, giving the actual GST as $5.60.
In the case of the second receipt for $154.34, GST $7.74, Flybuy points were used to pay the entire amount. The GST in this case has to be reduced by 100% or 1 * $7.74, meaning no GST has been paid. Put another way, Flybuys is a discount and needs to be applied equally to tax free items and taxed items. Thus the amount of GST paid for the taxed items is reduced.
In this case, the Australian GST Calculator won't assist in this more complex situation. It may be worthwhile when purchasing business related items to either pay entirely using Flybuy points, or not to use Flybuy points at all.
Kelvin Eldridge
www.AustralianGSTCalculator.com.au
Today however, I noticed a very unusual situation that I'd never seen, or thought about before. According to the Coles site, Coles receipts, which are clearly marked at tax invoices, also display a disclaimer they are not valid tax invoices, if Flybuy points are used. Coles provides a GST Calculator specifically for calculating the actual GST when you use Flybuy points.
https://www.coles.com.au/customer-service/gst-calculator
Looking at the examples provided, it appears you need to apportion the Flybuy point saving in proportionally to both the tax example and taxed items. In the first example on the link provided the total receipt is for $79.99, the Flybuys discount is $10, the GST on the receipt is $6.40 and the tax free item is $9.55.
The $10 as a proportion of $79.99 is 0.125. Therefore the GST needs to be reduced by 0.125 or $0.80, giving the actual GST as $5.60.
In the case of the second receipt for $154.34, GST $7.74, Flybuy points were used to pay the entire amount. The GST in this case has to be reduced by 100% or 1 * $7.74, meaning no GST has been paid. Put another way, Flybuys is a discount and needs to be applied equally to tax free items and taxed items. Thus the amount of GST paid for the taxed items is reduced.
In this case, the Australian GST Calculator won't assist in this more complex situation. It may be worthwhile when purchasing business related items to either pay entirely using Flybuy points, or not to use Flybuy points at all.
Kelvin Eldridge
www.AustralianGSTCalculator.com.au
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