EV 1052083481550currentnon-binding advice

GST and agency

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

1 Does the Commissioner agree that for GST purposes, Entity B will not procure the collection of fees as principal, but does so merely as collection agent for Entity A?

2

Yes, the Commissioner agrees that for GST purposes Entity B will not procure the collection of fees as principal but does so merely as collection agent for Entity A. Question 2 Will the collection of fees by Entity B be consideration for a taxable supply by Entity B to Entity A's customers? Answer No, the collection of fees by Entity B will not be consideration for a taxable supply made by Entity B to Entity A's customers. This is because Entity B is acting as agent for Entity A and the fees it collects is consideration for supplies made by Entity A to its customers. This ruling applies for the following periods : XX August 20XX to XX June 20XX The scheme commenced on: XX August 20XX

3

Entity A is currently registered for GST. Entity B which is also currently registered for GST, has entered into a contract with Entity A to collect fees from the customers of Entity A under an agency arrangement. Entity B will be paid by Entity A for the provision of these agency services to Entity A. Entity A and Entity B will not enter into a Subdivision 153-B Agreement in respect of any supplies or acquisitions.

4

A New Tax System (Goods and Services Tax) Act 1999 Section 9-5 A New Tax System (Goods and Services Tax) Act 1999 Section 9-40