Employee

 

  • Goods and services given free to employees as part of their overall remuneration package are known as fringe benefits. The GST treatment for fringe benefits is explained in the following paragraphs.

  • When goods are sold at a lower price to your employees, GST is accountable on the net amount paid after the discount.
  • You are not allowed to claim input tax for purchases if the tax invoices are addressed to your employee unless you can prove that the employee is acting as an agent of the company in receiving the supply of goods or services. For tax invoices containing both business and private expenses, the GST incurred for private expenses is not claimable.

  • The GST treatment for the sum of money paid by an employee to you (the employer) for receipt of a gift from a third party depends on who the gift belongs to.