GST treatment of supplies of payment processing or facilitation services to merchants

This interpretation statement applies to entities that provide payment processing or facilitation services, including payment technology, to merchants. These entities include payment service providers (PSPs), buy now, pay later (BNPL) providers and other suppliers of payment technology or infrastructure.

The statement provides a framework to determine whether services provided to merchants are financial services. When the supply to merchants includes settlement services, there will be a supply of financial services, and these supplies will be GST exempt (or zero-rated if applicable). The statement also explains whether there is a single supply or multiple supplies of services that may have different GST treatments.

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