29 March 2024

In what circumstances is the supply of a credit card GST-free
28 April 2014

The supply of a credit card facility will be GST-free under Item 4 to the extent it is intended that the cardholder will use the facility to undertake a transaction when they are physically outside Australia, provided the cardholder's location outside Australia is integral to the relevant use of the credit card facility.

For card-present transactions when the cardholder is overseas, the cardholder must be physically present to tender the card as payment and make the relevant purchase or receive a cash advance. Therefore, the cardholder's location outside Australia is integral to the relevant use of the credit card facility and to that extent the use of the rights in the credit card facility are outside Australia.

For card-not-present transactions, the use of the rights in the credit card facility will only be for use outside Australia in those circumstances where the cardholder enters into the transaction when they are physically outside Australia and the cardholder's presence outside Australia is integral to the relevant use of the credit card facility.

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