Rebates and GST

What is a rebate?

A rebate is an incentive that you offer as a supplier, or receive as a purchaser in many different circumstances.

A rebate can also be called a:

• trade incentive payment
• trade discount
• trade price rebate
• volume rebate
• promotional rebate
• incentive rebate
• cooperative advertising allowance
• case deal
• deferred credit
• third party payment

The way you apply GST to rebates depends on your circumstances. A rebate can give rise to:

• an adjustment event, as a result of which you may have to make an adjustment to the amount of GST you either paid or claimed
• a third party payment adjustment, as a result of which you may have to make an adjustment to the amount of GST you paid or claimed
• a payment for a separate sale.

The way you account for GST will be different in each of these situations.