GST & redemption of BP Reward points
If you use BP Reward points to partially pay or apply a BP Rewards Discount for fuel and products at participating BP service stations, the GST payable shown on the tax invoice will need to be adjusted.
The following message will be printed on either the tax invoice or a separate pinpad receipt noting the GST amount to be reduced on the tax invoice:
“The GST amount stated on the invoice is to be reduced by $xx.xx”
This will allow you to calculate the GST paid by you and may be treated as a valid tax invoice. You should use the adjusted GST payable when calculating any GST credit entitlement.
The examples below outline the GST impact of various scenarios.
What is the GST payable if my redemption of BP Reward 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 Loyalty points to the value of $30 there will be no balance owing.
How is the GST calculated for a points plus pay transaction?
A points plus pay transaction is where you pay with points as well as another method, such as cash or card. For this transaction, the GST reduction amount is determined by the amount of points redeemed, the GST status of the products and the redemption eligibility of the product.
Example one: All eligible 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 redeemed Loyalty points to the value of $30, you will have paid $66 to BP.
The adjusted GST amount is calculated as follows:
- total price paid as a proportion to the total invoice amount. In this example $66 / $96 = 68.75%.
- apply the proportionate percentage to the GST amount. 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: All eligible items but some items GST-free
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 redeemed Loyalty points to the value of $30, you will have paid $85 to BP.
The GST reduction amount is calculated as follows:
- total price paid as a proportion to the total invoice amount. In this example $85 / $115 = 74%.
- apply the proportionate percentage to the GST amount. In this example 74% x $10 means the adjusted GST amount = $7.40.
Example three: All items are subject to GST but some items are ineligible
If your original tax invoice from BP states that you spent a total of $88 (inc $8 of GST), with $66 on fuel and $22 on ineligible items, and you redeemed BP Reward points to the value of $25, you will have paid $63 to BP.
The GST reduction amount is calculated as follows:
- total price paid less ineligible items as a proportion to total invoice amount less ineligible items $41 / $66 = 62%.
- apply the proportionate percentage to the GST amount for eligible items. In this example 62% x $6 means the adjusted GST amount = $3.72.
How is the GST calculated for a BP Reward Discount?
A BP Rewards Discount is where you receive a discount off the retail price for eligible products or transactions. For these transactions, the GST reduction amount is determined in the same way as outlined above for points plus pay transactions, that is it is based on the amount of the discount, the GST status of the products discounted and the discount eligibility of the product.
How do I print this information?
If you need to print a copy of this information, for example to give to your accountant, click on all the drop-down arrows to ensure the text is visible before printing.
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.
