GST treatment of ATM service fees, credit card and debit card surcharges - GSTR 2014/2
18 Dec 2014
On 17 December 2014, the ATO issued GST Ruling GSTR 2014/2 entitled "Goods and services tax: treatment of ATM service fees, credit card surcharges and debit card surcharges".
It was previously released in draft form as GSTR 2014/D2.
This Ruling explains the goods and services tax (GST) treatment of:
- a fee payable for ATM services listed in subregulation 40-5.09(4A) of the A New Tax System (Goods and Services Tax) Regulations 1999 (GST Regulations)
- a surcharge imposed by a merchant on a customer in respect of a credit card transaction concerning supplies of goods or services by the merchant to the customer
- a surcharge imposed on a customer in respect of a credit card transaction concerning the payment of an Australian tax or an Australian fee or charge subject to Division 81, and
- a surcharge imposed by a merchant in respect of a debit card transaction concerning a supply of goods or services, a cash withdrawal or both a supply of goods or services and a cash withdrawal.
As a result of the issue of GSTR 2014/2, GSTII FS4 (Financial Services Questions and Answers Credit card surcharge - part of consideration for supply) has been withdrawn with effect from 17 December 2014. For the notice of withdrawal, go here
Further, ATO ID 2008/116 (GST and credit card surcharge for payment of an Australian tax, fee or charge) has been withdrawn.