What tax code do I use for creditcard purchase interest, NCG or NCF?

Courtenay
Courtenay Member Posts: 3 Novice Member Novice Member
edited October 2024 in Accounts Hosted
Not sure what bank fees & creditcard fees/interest etc include GST or not! Have amounts coming up in my CAF column on tax summary and just want to make sure they are right...

Comments

  • Zappy
    Zappy Accredited Partner Posts: 5,252 Accredited Partner Accredited Partner
    edited August 2019
    Bank fees may, or may not, include GST. Ask your bank. Interest does not. And its NCF NOT CAF.
  • John Graetz
    John Graetz Member Posts: 1,447 Reckon Hall of Famer Reckon Hall of Famer
    edited July 2020
    In general terms the ATO mostly regard these items as Input Taxed Supplies so whilst you could use the NCF code, it is probably more correct to use the "NCI code - Non-cap Acq. - for making Input Taxed Supplies" as per the Reckon Tax Item List.  There will of course be instances where a bank charge does include GST and, in the case of Westpac, they issue a Tax Invoice to cater for this and so in those instances NCG would be applicable..   John L G  
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