Are sales accounting services provided as part of a debt factoring arrangement, an incidental financial supply?
The ATO guidelines note that in order for a supply to be an incidental financial supply, it must be provided directly in connection with the financial supply. The sales accounting function of factoring is generally not provided directly in connection with the discounting facility. Discounting can be provided without the sales accounting function. The latter is generally an additional service for which the client pays an additional fee. Therefore, sales accounting services are a separate taxable supply.
Related Questions
- Who may need Platinum’s debt factoring services, including, but not limited to, sales ledger finance and sales ledger management?
- Are sales accounting services provided as part of a debt factoring arrangement, an incidental financial supply?
- Are sales accounting functions that are part of a debt factoring arrangement subject to GST?
