Which Tax code do I use?
Hi,
For Bank Charges and Marchant fees for credit cards ,what do we use as tax code N-T or FRE ?
Bank charges are gst free so fre is the correct code however if you are using the now default simplified BAS neither free nor not reportable appears on the BAS so either will suffice
Merchant fees are taxable ie contain gst and should be reported using the gst code.
Technically they are not bank fees as Visa, Mastercard etc are the merchant not the bank
