GST & redemption of Velocity points
If you use Velocity points to partially pay for fuel and products at participating BP service stations and you're entitled to claim GST credits for the transaction, the GST payable shown on the tax invoice will need to be adjusted. These instructions, together with the pinpad receipt and the tax invoice issued by BP, will allow you to calculate the GST payable by you and may be treated as a valid tax invoice.
What is the GST payable if my redemption of Velocity points funded the entire purchase?
In this case, the GST payable on the transaction by you is $0. For example, if you purchased $30 of fuel (including GST of $2.73) and redeemed Velocity points to the value of $30 there will be no balance owing.
How do I calculate GST for a points plus pay transaction?
This methodology should be applied to determine the adjusted GST payable if you pay with points as well as another method, such as cash or card. This is called a points plus pay transaction.
Example one: All items subject to GST
For example, if your original tax invoice from BP states that you spent a total of $96 (inc $8.73 of GST) on fuel and you used Velocity points to the value of $30, you will have paid $66 to BP. To determine the adjusted GST amount calculate the:
- proportion of the total price that you paid. In this example $66 / $96 = 68.75%.
- adjusted GST amount by reducing the original GST on the invoice by the proportion that you have paid. In this example 68.75% x $8.73 means the adjusted GST amount = $6. As the products purchased were all subject to GST, the corrected GST amount equals 1/11th of the amount that you paid (i.e. 1/11th x $66)
Example two: Not all items subject to GST
If your original tax invoice from BP states that you spent a total of $115 (inc $10 of GST), with $110 on fuel and $5 on bread and milk, and you used Velocity points to the value of $30, you will have paid $85 to BP. To determine the adjusted GST amount calculate the:
- proportion of the total price that you paid. In this example $85 / $115 = 74%.
- adjusted GST amount by reducing the original GST on the invoice by the proportion that you have paid. In this example 74% x $10 means the adjusted GST amount = $7.40.
How do I print this information?
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This is not the provision of tax or accounting advice. The material on this webpage has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax or accounting advice. You should consult your own tax and accounting advisors to understand your tax obligations.