GST issues registers
Tourism and hospitality industry partnershipIssue 19 - Frequent flyer points/loyalty programs
Issue
What is the GST treatment of travel booked using frequent flyer points?
Decision
Media release NAT 2000/14 issued 1 March 2000 states in part:
'The accrual and conversion or redemption of points by members into goods or services will not be subject to GST.'
GST does not apply to the award of frequent flyer points, or to the goods or services supplied on redemption of points, as there is no consideration. However, GST will apply to the supply to the extent that any additional amount is paid.
References
- •
- Media release NAT 2000/14 - No GST on loyalty
- •
- Goods and Services Tax Ruling GSTR 2012/1: Goods and services tax: loyalty programs
© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA
You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).