Originally Posted by
honie99
Any accountants in the room? If I pay for business travel using APD, can I claim it as an expense for tax deduction purposes?
Before anyone flames me, the reason for the question is that APD are pretty much the same as spending real NZD, so just wondering if there is a precedent for this.
TIA.
Yes
Everytime you earn airpoints on a business travel the journal entry is
Credit travel
Credit GST
Debit airpoints inventory
When you use
Debit travel
Debit GST
Credit airpoints inventory
If you use the airpoints for personal purposes then you need to pay GST
Or pay paye on the use
That's the theory but I assume most people would ignore airpoints