This GST Ruling GSTR 2014/2 was issued on Wed 17.12.2014 and outlines the GST treatment of:
- fees payable for ATM services;
- surcharges imposed on credit card transactions; and
- surcharges imposed on debit card transactions.
It was previously issued as Draft GSTR 2014/D2 and contains changes.
DATE OF EFFECT: Applies both before and after its date of issue.
[LTN 244, 17/12/14]
Fees payable for ATM services – Extract from Ruling
3. Under subregulation 40-5.09(4A) of the GST Regulations, a supply by an entity for a fee of not more than id=”mce_marker”,000 is a financial supply [and thus input taxed] if it is a supply of one or more of the following ATM services:
- a withdrawal from an account
- a deposit into an account
- an electronic transfer from an account;
- advice of the balance of an account.
Surcharges imposed on credit card transactions – Extract from Ruling
8. A credit card surcharge imposed by a merchant on a customer for a credit card transaction forms part of the consideration for the supply of the goods or services made by the merchant. There is a sufficient nexus between the surcharge and the supply of the goods or services for the surcharge to be paid for the supply.
9. The credit card surcharge forms part of the consideration for a taxable, input taxed or GST-free supply depending on the GST treatment of the supply of the goods or services in question.
Surcharges imposed on debit card transactions – Extract from Ruling
29. A debit card surcharge imposed by the merchant on a customer for a debit card transaction forms part of the consideration for the supply of goods or services made by the merchant. There is a sufficient nexus between the surcharge paid by the customer and the supply of goods or services made by the merchant for the surcharge to be regarded as being paid for the supply in question.
30. The debit card surcharge forms part of the consideration for a taxable, input taxed or GST-free supply depending on the GST treatment of the supply of the goods or services in question.