For a GST-registered business in Singapore, the GST treatment of a voucher depends on whether it is a multi-redemption voucher (MRV) or not. An MRV, such as a S$50 shopping voucher or a stored value card that can be used for a range of goods or services, is not subject to GST when sold at or below its face value; GST is accounted for when it is redeemed. A voucher for specific goods or services, such as “three facial sessions” or “one buffet dinner”, is a non-MRV: the sale is treated as a prepayment, so GST is due when payment is received or an invoice is issued, whichever is earlier, and not again on redemption. Expired, unredeemed MRVs must be brought into GST when they expire and the income is recognised. These rules are in section 35A of the GST Act and IRAS’s e-Tax Guide on vouchers (sixth edition, 30 January 2026).
Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.
This guide is for retailers, F&B operators, salons, gyms, training providers and online sellers that sell vouchers, gift cards or prepaid credits.
Is your voucher an MRV?
Under IRAS’s guide, an MRV must meet all of these conditions:
- It is sold for a consideration;
- It gives a right to goods or services up to a stated value (the “specified value”), or a monetary value assigned to non-monetary credits such as paid loyalty points;
- It does not refer to the value or description of any specific goods or services; and
- It must be presented or used in exchange for the goods or services.
Everything else is a non-MRV, including free vouchers, discount vouchers, product vouchers (for example, a voucher for a kettle worth S$100) and parking coupons. A non-MRV can show a dollar value and still be a non-MRV, because the value simply describes the specific item.
The treatment side by side
| MRV (gift card, shopping voucher, stored value card) | Non-MRV (voucher for specific goods or services) | |
|---|---|---|
| On sale | No GST if sold at or below specified value; GST only on any amount above it | GST at the earlier of payment or invoice, as a prepayment |
| On redemption | GST on the specified value redeemed plus any top-up paid | No further GST unless the customer pays extra |
| If given free | Not an MRV (no consideration) | No GST on issue; redemption of goods costing over S$200 may be a deemed supply |
| If it expires unused | GST due at expiry, when the sale amount is recognised as income | Already taxed at sale |
No GST is due on redemption of an MRV for zero-rated, exempt or out-of-scope supplies, but IRAS says such redemptions should still be reported in the GST return.
Practical points for MRVs
Discounted vouchers
If a S$100 MRV is sold for S$80 in a promotion, the supplier may account for GST on redemption based on the S$80 actually received, but only if it can identify that the lower amount was received for that voucher. Otherwise GST is on the S$100 specified value.
Cannot track redemptions
An issuer that also supplies the goods and cannot track redemptions must account for GST on the full consideration when the MRV is sold, even if sold at or below face value. It then does not charge GST again on redemption or on expiry, and must not issue a second tax invoice at redemption.
Vouchers sold through intermediaries or redeemed elsewhere
Where the issuer and the supplier are different businesses, or vouchers are sold through intermediaries such as deals platforms, the guide has separate rules and examples, including margin accounting for some intermediaries. Map the contract flows before deciding who accounts for what.
Bookkeeping that makes the GST return easy
- Record MRV sales to a liability account (voucher deposits), not revenue.
- On redemption, move the redeemed value to sales and account for output tax on the standard-rated portion.
- Keep a voucher register: serial number, specified value, price paid, date sold, expiry date and redemption status.
- At expiry, release unused balances to income and account for GST in the same period.
- For non-MRVs, invoice and account for GST when sold, and record a contract liability for the service still to be provided.
For prepaid packages that are cancelled or refunded, see GST on cancelled bookings, refunds and forfeited payments. For festive gifts given to customers or staff rather than sold, see corporate gifts and GST.
Worked example
Example only, not a client case. A GST-registered café sells 200 S$50 gift cards (MRVs) in December, including 50 sold at S$45 in a promotion it tracks by serial number. No GST is accounted for on the sales. In January, 120 cards are redeemed for food and drinks: GST is accounted for on S$50 each for full-price cards and S$45 each for the tracked promotional cards, using the GST fraction on the GST-inclusive amount. Thirty cards expire unredeemed after 12 months; the café releases the amounts to income and accounts for GST on them in that period. Separately, it sells “2-for-1 brunch” vouchers for S$60, which name a specific meal: those are non-MRVs, so GST is accounted for when they are sold.
Common mistakes
- Charging GST on gift card sales and again on redemption.
- Treating package vouchers (“10 classes”) as MRVs and deferring GST.
- Forgetting GST on expired gift cards.
- No voucher register, so discounted sales cannot be identified.
Other frequent GST slips are listed in common GST errors and how to fix them.
Frequently asked questions
Does this apply if we are not GST-registered?
No. Only GST-registered businesses account for GST. Voucher sales count towards turnover when assessing whether you must register; see GST registration.
Are e-vouchers treated the same as paper vouchers?
Yes. The form does not matter; the conditions above do.
What about reward points we give free?
Free points are not MRVs. For a single retailer’s free rewards, redemption of goods may be a deemed supply; paid loyalty points can be MRVs.
Can a voucher be redeemed for another voucher?
IRAS says no tax point arises when an MRV is redeemed for another MRV; GST arises when the later voucher is redeemed for goods or services.
Need help with GST on vouchers?
If your business sells gift cards, stored value or prepaid packages and wants its GST treatment checked, contact the Raffles Corporate Services tax team at [email protected] or on WhatsApp at +65 8501 7133. We prepare GST returns, set up voucher accounting in your books and review past periods for errors.
Kevin Yeo, Raffles Corporate Services