If you give gift cards or vouchers to your employees as a reward for their hard work, you may be wondering how to properly account for the GST in Xero.
Well, it’s easier than you may think!
Buying a gift card and giving it to an employee is different to buying them a physical gift. In essence, you are simply transferring money, so there isn’t much GST involved.
Check out our video to find out how to properly report GST in your Xero BAS returns for any gift cards and vouchers you give to your employees as a reward.
In this video, we only cover the GST implications of this type of transaction, so if you need advice on FBT or the tax deductibility of your gift cards, please seek the help of a professional tax accountant.
Disclaimer: Our articles and videos are here to inform you and the information provided does not constitute financial, taxation, legal, business or other professional advice and should not be relied upon as such. See our full disclaimer here.