Does anyone know why Telstra SIM cards would be gst exempt? Got a Costco SIM card but checked the receipt and the gst amount is $0.
No GST on Costco Invoice for Telstra Sim Cards
zman09 on 19/06/2025 - 18:07
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Learnt something new! Thanks
It is the same with gift cards
That's different, that's like pre-loading a credit card…
In the case of a phone company though, you are paying money for a service. It's is different to cash.
sim cards do not attract GST at point of sale but at point of usage.
That is ridiculous.
It should be when you pay for the service.
Agree
Telstra is the one should be giving you the GST invoice once you activate and use the service
So you get the tax invoice after 12 months if you purchase a 12 month prepaid card?
Why?
Yup.
Basically, a prepaid SIM/recharge is like a gift card. It's not the gift card that attracts GST but what you buy with it in the future.
Here's the relevant ATO bumf if you want a light read on the subject: https://www.ato.gov.au/law/view.htm?docid=GST%2FGSTR20035%2F…
Basically, a prepaid SIM/recharge is like a gift card.
Not once it is activated.
It's just a prepaid service, so should attract GST like any other prepaid service does.
@jv: Yes, it attracts GST. I just checked an old Boost tax invoice that shows $3.18 GST in a $35 recharge.
Both Telstra and Boost online account show tax invoice is available 48 hours after recharge expires for a service. Thus, tax invoice is only issued for a finished recharge.
What's interesting is: Telstra even credits plus points for the initial recharge from a starter pack, e.g. $35 recharge for 350 points.
For a never activated SIM, there's no tax implication. The Telco got your gifted free money.
tax invoice is available 48 hours after recharge expires for a service.
It should be as soon as you pay for it and activate the service… You shouldn't get a tax invoice a year later into a different tax year. You should be able to claim expenses in the year that you pay for them…
Other service providers give you a tax invoice right way, what makes a phone company different ?
@Neoika: Yes, but if I buy a 12 month pre-paid plan with Telstra, I don't want to wait 12 months to get a receipt.
I'd want to claim it this tax year.
Can comfitm they don't keep any tax records on your sim activations or recharges
No, Telstra/Boost keep tax invoices very well for at least two years for a number, even if the number had been moved to another Telco during the two years. Here is one of my number's tax invoices in the two years. I never do a 2nd recharge so that all the tax invoices are for the initial recharge from a starter pack, altogether 4 invoices. Obviously, the number had been moved to other Telcos between each invoice.
Interesting. I tried to get mine for an Audit. They couldn't find them. TIO did an investigation, then concluded Telcos don't need to keep them.
In this case, there seems no way to access past invoices in my account if the number is not currently with Boost. This number is still with Boost in expired status.
sim cards do not attract GST at point of sale but at point of usage. i.e. Telstra is the one should be giving you the GST invoice once you activate and use the service
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