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Coles online charing GST on free delivery

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Hi

I'm just curious which GST law allows Coles to charge GST on 'free delivery'?

The delivery fee for example is $4 then they give you a discount of $4 but you still pay $0.36 gst on the $4 that was never charged.

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Hi @pete

 

Welcome to our Community!

 

Delivery charges from Coles to consumers are most likely a separate supply to the supply of goods, and is a taxable supply. It looks like in your case, the delivery charge is supposed to be $4 (GST inclusive, with $0.36 GST). If the contractual arrangement between Coles and yourself as a consumer is that there is a reduction in the consideration of the supply from Coles to you once you have qualified for that reduction (in the form of free delivery or a reduction in price to $0.36), then it is up to Coles as the supplier to determine their GST obligations. Please contact Coles for answers about the final consideration of the supply.


If you have further queries, you can email GSTmail@ato.gov.au

 

Thanks, JodieH. 

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Best answer

ATO Certified

Community Support

Replies 0

Hi @pete

 

Welcome to our Community!

 

Delivery charges from Coles to consumers are most likely a separate supply to the supply of goods, and is a taxable supply. It looks like in your case, the delivery charge is supposed to be $4 (GST inclusive, with $0.36 GST). If the contractual arrangement between Coles and yourself as a consumer is that there is a reduction in the consideration of the supply from Coles to you once you have qualified for that reduction (in the form of free delivery or a reduction in price to $0.36), then it is up to Coles as the supplier to determine their GST obligations. Please contact Coles for answers about the final consideration of the supply.


If you have further queries, you can email GSTmail@ato.gov.au

 

Thanks, JodieH.