NBS Agents >> Merchant Account Agent and ISO Programs

When a merchant charges a service charge, credit card fee or a surcharge for the use of a credit card does this charge attract GST?

GST is applicable to all goods and services, including bank fees.

2 Responses

1. ~*wordsmith*~ Says:
   March 15th, 2010 at 2:54 am

   GST is applicable to all goods and services, including bank fees.
   References :

2. lee Says:
   March 15th, 2010 at 3:25 am

   Bank customers do not pay GST on most of the services they receive from banks.

   Most of the services provided by banks are ‘input taxed’ under the GST. This means that banks pay GST on most things they purchase, but unlike other businesses they do not receive a tax credit for the tax they pay. This means they face higher costs as a result of the GST than other industries. These additional costs are taken into account when products and services are priced

   Any fees charged to your credit card, should not incur GST
   References :
   Industry knowledge.

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