If an agent buys or sells goods or services for their client (the principal) they may be able to provide or receive taxable supply information on their client's behalf.
The agent's name and GST number can be on the taxable supply information.
Rules for agents providing or receiving taxable supply information
- The agent and the client must be GST-registered.
- The agent must keep a record of their client's name, address and GST number for each sale or purchase.
- Although the taxable supply information is in the agent's name, their client is the seller or buyer of the goods or services.
- The client cannot provide taxable supply information for the same sale.
- The same rules apply for agents providing or getting supply correction information.
When the agent is an employee
An employee may buy goods or services on behalf of their employer.
The employer can claim back the GST on the goods or services if:
- they have reimbursed their employee for the exact cost of the goods or services
- they are GST-registered
- the employee has taxable supply information with the employee's name and address on it.
The employer cannot claim back the GST if they pay the employee an allowance to cover the expense.