Private ruling: GST and agency
Date of advice: 7 February 2023
Published: 27 March 2023
Ruling period: XX August 20XX to XX June 20XX
Date scheme commenced: XX August 20XX

Ruling: Q1: 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? | A1: 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. | Q2: Will the collection of fees by Entity B be consideration for a taxable supply by Entity B to Entity A's customers? | A2: 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.

Relevant facts and circumstances: 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.

Relevant legislative provisions: 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