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Industry Guide:

Agents

 
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FREQUENTLY ASKED QUESTIONS

1. As an agent, how am I involved with GST?

As an agent, you will usually be involved in at least two separate supplies at any one time:
(a) The supplies made between your principal and the third party; and
(b) The supply of your own services to your principal, for which you will charge a fee or commission. The normal GST rules apply to your services as an agent.

2. As an agent, do I have to charge and account for GST?

As an agent, you are providing a supply of services to the principal and the third party. Generally, you do not own the goods you deal with. Hence, the sale of the goods is not your supplies. Your supply of services is a taxable supply. Therefore, if you are registered for GST, you are required to account for GST on the commission you received. However, if you are not a registered person, you cannot charge GST on the services that you provide. 

3. As an agent, how do I calculate my turnover for registration purposes?

The calculation of your turnover will be on: (a) the value of services to the principal (i.e. commission charges). (b) the value of taxable supplies that you make in your own name, but excludes the value of supplies arranged for the principal (since the supply is actually made by the principal).

4. Can tax invoices be issued by agents?

When an agent sells goods and services on behalf of a principal, the supplier for GST purposes is the principal and not the agent. Therefore, if the principal is a registered person, the tax invoice must be issued by the principal. 

5. Do I have to apply to RMC if I want to act as an agent for my overseas principal who is liable under the GST Act?

If an overseas principal is liable under the GST Act, he has to be registered through an agent appointed by him. Therefore, as a person appointed by the overseas principal, you must apply to RMC to be such agent. You need to submit supporting documents such as an authorised letter from the overseas principal. Upon such registration, you will be held accountable for GST liabilities and need to file returns on behalf of the overseas principal. You will also have to keep separate records for the overseas principal. If you are a taxable person yourself, you must also register yourself separately. 

6. Who is accountable for GST if I import and supply the goods locally on behalf of my overseas principal who is not a taxable person?

If you are importing and supplying the goods on behalf of an overseas principal who is not a taxable person, the goods will be treated as imported by you if you declare the goods in your own name. However, the subsequent supply is considered as a supply made by you. You are accountable for GST and you must charge output tax on the sales if you are a GST registered person and may claim GST paid on the imported goods. 
 
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www.ict.com.my
 
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