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

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Courtenay
Courtenay Member Posts: 7 ✭
edited July 2020 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...

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  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited July 2020
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    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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