Tax code for international wire fee

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  • Updated 4 months ago
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Overseas customer instructed us to add $25 international wire fee on top of the payment shown on invoice( Wire fee not included). How should I record it?

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Melisa

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Posted 4 months ago

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Kevin Whiting

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I would record this as a bank fee, GST free (Export).  Sometimes the fee is deducted by intermediary banks in the foreign exchange chain, so may not be visible to either yourselves or the customer until the remission is received.  It is highly unlikely that you will receive any documentation - the fee will simply be taken from the remission without any warning or advice.
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Melisa

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Many thanks. Kevin.