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GST and Credit Card Surcharge Fees

GST and Credit Card Surcharge Fees
Jun
3
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.

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