GSTR 2019/2 and PCG 2019/8 – GST: credit card issuing business – creditable purpose of acquisitions – ‘Green zone’ = 35% allocation to creditable ‘interchange’ services

On Wed 18.12.2019, the ATO issued 2 products for credit card issuers: GST Ruling GSTR 2019/2 (determining the creditable purpose of acquisitions in a credit card issuing business) and Practical Compliance Guideline PCG 2019/8 (ATO compliance approach to GST apportionment of acquisitions that relate to certain financial supplies).

See below for a summary of this Ruling and Guide.

[Tax Month – December 2019]