Private ruling: GST and supply of a debit card
Date of advice: 29 November 2018
Published: January 2019
Ruling period: from 1 July 2018

Ruling: Q1: Are you making a taxable supply under section 9-5 of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) when you begin charging a card fee to a customer? | A1: Yes. You are making a taxable supply under section 9-5 of the GST Act when you begin charging a card fee to a customer. | Q2: When a customer transfers the 'Initial Top-Up Amount’ to its debit card account, is that amount consideration for a supply that you make? | A2: No. The transfer of the Initial Top-Up Amount is not consideration for a supply that you make to a customer. | Q3: When a customer transfers by direct debit the ‘Additional Top-Up Amount’ to its debit card account, is that amount consideration for a supply you make? | A3: No. The transfer of the Additional Top-Up Amount is not consideration for a supply that you make to a customer. | Q4: When a debit card account is debited, upon using the debit card, when paying for goods or services you supply to a customer, is the amount debited consideration for a supply and the requirements of section 9-5 of the GST Act are satisfied? | A4: Yes. The amount debited in a customer’s debit card account is consideration for a supply and you are making a taxable supply under section 9-5 of the GST Act unless the supply is GST-free. | Q5: Are you making a financial supply when you accept the Initial Top-Up Amount and the Additional Top-Up Amount from a Customer? | A5: No. You are not making a financial supply when you accept the Initial Top-Up Amount and the Additional Top-Up Amount from a Customer.


Relevant legislative provisions: A New Tax System (Goods and Services Tax) Act 1999 sections 9-5 and 40-5