- No output tax is needed for gifts worth $200 or less per recipient per occasion (excluding GST), or when input tax was not claimed.
- Gift vouchers are treated as services, and free items bundled with a purchase are taxed only on the amount paid.
- For gifts bought from unrelated suppliers, the purchase price can be used as open market value; for later-distributed business assets, value must be based on identical or similar goods at the time of giving.
- GST on gifts can be borne by the business or recovered from the recipient; if the recipient pays and is GST-registered, a tax certificate can be issued instead of a tax invoice.
- Samples are usually taxable unless given to current or potential customers, not normally sold, and marked “Not for sale” or “Sample only”; promotional catalogues may be exempt as commercial samples.
Source: fiscal-requirements.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
