Is Skype credit a "good" - Anyone a Tax / GST specialist ?

• 

  RedLights on 28/04/2013 - 11:49

  +1

  It's a good if its tangible

• 

  tsunamisurfer on 28/04/2013 - 18:56

  +12

  I'd say give it a try.

  What is the worse that can happen?

  Tonight on Border Security

  This passenger trie to claim 9% back from his Skype Card……watch him get detained.

• 

  bac0n on 28/04/2013 - 21:17

  Your Skype card would be considered a good. What RedLights said is correct - a good is any form of tangible personal property. This is from the definitions of the GST Act.

  I think your issue would be that the TRS office will say that your card is a gift card or voucher which means you cannot get your GST back on it. Alternatively, they may say that it is a consumable (credits) which are arguably wholly or partially consumed in Australia. http://www.customs.gov.au/site/page4646.asp

  Definitely no harm in trying but I wouldn't be too surprised if they knock you back.

• 

  KBZ on 28/04/2013 - 21:48

  -1

  So you bought $600 dollars worth of Skype credit.. Talk about being greedy.

  • 

    retiredfeline on 28/04/2013 - 22:08

    Or greedy about talk. :)

    • 

      bargrin on 28/04/2013 - 23:09

      why would i buy $600 worth of credit, are you nuts?

      • 

        easternculture on 28/04/2013 - 23:20

        He's got Nuts for doing that !

      • 

        retiredfeline on 28/04/2013 - 23:42

        True but you have to take the other goods making up the $300 overseas too. Hope they are easy to carry, like camera, etc.

      • 

        bargrin on 28/04/2013 - 23:53

        Thanks to targets warehouse craziness, got myself a camera, phone and to bring it upto $300 the skyoe cards.

        But now thinking i shouldnt rely on the cards to make up the $300 so might go and see if i can buy some other stuff.

• 

  Wade on 29/04/2013 - 01:27

  +1

  As far as I know with most gift cards, there isn't actually any GST payable when you just buy the card.. If it shows on the print out you might want to give it a shot, however it's probably because they added it to their systems as a normal item.

  Gift cards, as far as I believe, are simply a 'transfer of currency', and therefore do not attract GST. You are changing your dollars into Skype currency. When you redeem the Skype currency, that's when you pay GST - on the calls or whatever.

  I've rolled out a gift card system nationally using inComm (one of the largest providers of gift cards), with many different types of cards. God it gave me a headache when it came to GST, as when it's sold to the customer, the store that sells it makes no profit, and therefore pays no GST on the sale. A $50 gift card is classed as a no-tax sale, with 0% margin. When the stores receives it's commission on the sale however, GST is applicable.

  Cheers,
  Wade

  • 

    retiredfeline on 29/04/2013 - 01:34

    I bought a Skype card and definitely was charged 10% GST on it, says $0.45 on the docket.

    I think while the Skype might be given like a gift card, in practice it's more akin to a voucher for service. There is no exchange for goods like a Wish card for example where GST is charged when you pay for the goods.

    I think it's also different from an iTunes card where you get songs in exchange. A Skype card gets you a service. And the service may be taken in Australia or overseas.

    In short I think you may have trouble convincing customs. But then I'm not a taxation lawyer. Then again they might think it's like an iTunes card and you can get away with it.