Institute of Certified Bookkeepers
First Previous - Page 1 of 1 - Next Last

GST on Prize allocated as credit to Debtor account

  • Associate in Employment
  • 1 post
  • # 119973

Hi, I need help please to clarify the GST implications for prizemoney for an NFP (registered for GST).  Say a competitor in a Club sporting competition, who has paid a $5.00 (incl GST) entry fee, wins a prize of $10.00 value which can only be allocated as a credit to their individual Club debtor account and can only be used towards future purchases from the Club or to offset an existing debit balance on their debtor account.  The prize is not redeemable for cash.  Can the Club credit the Debtor account for $10.00 (no GST) and then claim an ITC of $0.91 and record $9.09 against the prizemoney expense account in the P&L?  Thank you.

First Previous - Page 1 of 1 - Next Last
loading