- RMCD issued STP 7/2024 on 26 July 2024 regarding Service Tax treatment on virtual credit cards
- Virtual credit cards issued as a product enhancement to physical credit cards are not subject to Service Tax if certain conditions are met
- Conditions include having the same activation/renewal date, expiry date, and CVV as the physical credit card, issuing only one statement or bill, and charging Service Tax on the physical credit card
- Service Tax should be charged on virtual credit cards if issued without a physical credit card or if it fully replaces the functions of a physical credit card
Source: assets.kpmg.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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