GST and Credit Card Surcharge Fees

GST and Credit Card Surcharge Fees
Written by Berwick Tax

The Administrative Appeals Tribunal has affirmed that the GST treatment of credit card surcharge fees, imposed by a supplier when payments are made by

In other words, if an underlying supply is GST-free, the credit card surcharge fee will be GST-free. Conversely, where the underlying supply is a taxable supply, the fee will attract GST.

A good example would be the Qantas credit card charge on an airfare booked on the internet. If the fare is an international one, then the fee will not include GST; if the fare is a domestic one the fee will include GST.

Filed in Taxation
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