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Bank Fees vs Merchant Fees

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5 Posts
Contributing User
Australia
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Bank Fees vs Merchant Fees

Hi,

 

First of all, I know that Bank Fees are free from GST, and Merchant Fees attract GST. However, my question is, how do I determine if a fee, is indeed a Bank Fee or a Merchant Fee? For example, the bank statement only tells "ATM Operator Fee". How do I know if there is GST in it or not? Can someone clear the confusion for me?

2 REPLIES
2,921 Posts
Ultimate Partner
Accepted Solution

Re: Bank Fees vs Merchant Fees

General rule of thumb would be not to claim GST if you have no tax invoice.

 

The ATM operator fee gets advised to you when you are withdrawing money from the ATM, and no tax invoice is issued.  

 

There is o tax invoice issued by the banks for their account transaction fees, establishment fees, honour fees, dishonour fees etc.

 

On the other hand, there is a tax invoice issued for merchant fees.

Julie Carter AIPA, BBus(Acctg),
MYOB Professional Partner, Registered BAS Service Provider
Associate Member of Institute of Public Accountants
Member Association of Accounting Technicians
ph: 0417 927 654 email: accuratebooks7@gmail.com
JAC' of All Trades Bookkeeping (Servicing from Leederville to Pinjarra, Fremantle to Armadale WA)
5 Posts
Contributing User
Australia

Re: Bank Fees vs Merchant Fees

Thank you, Mia. Your reply has been very helpful =)

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