Voucher and Discount

• A voucher or token is a medium which entitles the holder to receive goods or services in accordance with its terms
• Two types of voucher or token
  (a) Monetary - a monetary value is stated on the voucher or token embedded in the card as a credit
  e.g: touch n go card, prepaid card
  (b) Monetary - the provision of goods or services is specified on the voucher or token
  e.g. a voucher which entitles the holder to a two night stay in a hotel

Monetary
- Monetary voucher provides a right to receive goods/services up to its face value
- For GST purpose, the issue of monetary voucher is a supply of services
- Supply of monetary voucher at or below its face value with a consideration, the consideration is disregarded
=> no GST to be accounted at time of sale
=> GST is accounted upon redemption
- Examples: A prepaid card with a face value of RM 60 is normally sold at RM 60. A prepaid card with a value of RM 60 is sold at RM 55 by a retailer in KL
=> NO GST to be accounted at the time of sale

- Monetary voucher distributed/given free
=> Not a supply ; NO GST

- Sale of monetary voucher worth more than its value,
=> account GST on the excess at the time of sale
- Example: A prepaid card with a face value of RM 60 is sold at RM 62 by a retailer in KL
=> GST has to be accounted on RM 2 at the time of sale
=> i.e. amount of GST=RM 2 * 6/106 = RM 0.11321

- GST has to be accounted according to supply redeemed:
~ Standard rate supply - account for output tax
~ Zero rate supply - no GST
~ Exempted supply - no GST

- Redeem goods/services in monetary voucher
=> Subject to GST

- Redeem goods/services partly in cash voucher and partly in money
=> consideration for both cash voucher and money subject to GST

Non-Monetary Voucher
- provides goods/services as specified in the voucher

- GST is accounted at the time of sales
- GST has to be accounted according to supply (sale of goods/services):
~ Standard rate supply - account for output tax
~ Zero rate supply - no GST
~ Exempted supply - no GST

Non-monetary voucher distributed/given free
- for goods, subject to gift rule

value >RM500, GST
value <RM500, no GST

- for services,

not a supply, no GST

Discount
- Discount is allowed under GST
- GST charged on the value after discount
- Discount includes:
~ Cash Discount
~ Prompt payment discount
~ Volume discount
- Normally given in percentage or value
- Given when using discount card/coupon at the time of sale or after sale
- Sales to connected person based on open market value and not on discounted price

Royal Custom website:
http://gst.customs.gov.my/en/ib/Pages/ib_sr.aspx