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anuraogandra's avatar
anuraogandra
Member
7 years ago
Solved

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 ?
  • PaulBihet's avatar
    PaulBihet
    7 years ago

    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 

PaulBihet's avatar
PaulBihet
Ultimate Cover User
7 years ago

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 

anuraogandra's avatar
anuraogandra
Member
7 years ago

thank you for the explanation...

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