RMCD Service Tax Policy No. 7/2024: Virtual Credit Cards Exempt from Service Tax under Certain Conditions

• RMCD issued Service Tax Policy No. 7/2024 on 26 July 2024 regarding virtual credit cards
• Virtual credit cards not subject to service tax if certain conditions are met
• Service tax imposed on virtual credit cards issued without physical card or completely replacing physical card
• Deloitte comments on the impact of digital banks and e-wallets on virtual credit cards
• Updated guidelines clarify that virtual credit cards are treated the same as physical cards for service tax purposes

Source: www2.deloitte.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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