Document ID: chunk:federal_register_of_legislation:C2006C00496:clause:4_8:p1
Version: federal_register_of_legislation:C2006C00496
Segment Type: clause
Provision Reference: sch 4 cl 8 (pt 1/3)
Character Range: 32413–35003

8  After section 153‑25
Insert:

Subdivision 153‑B—Principals and agents as separate suppliers or acquirers

153‑50  Arrangements under which agents are treated as suppliers or acquirers

  An entity (the principal) may, in writing, enter into an arrangement with another entity (the agent) under which:
 (a) the agent will, on the principal's behalf:
 (i) make supplies to third parties; or
 (ii) make acquisitions from third parties; or
 (iii) make both supplies to third parties and acquisitions from third parties; and
 (b) the kinds of supplies or acquisitions, or the kinds of supplies and acquisitions, to which the arrangement applies are specified; and
 (c) for the purposes of the GST law:
 (i) the agent will be treated as making the supplies to the third parties, or acquisitions from the third parties, or both; and
 (ii) the principal will be treated as making corresponding supplies to the agent, or corresponding acquisitions from the agent, or both; and
 (d) in the case of supplies to third parties:
 (i) the agent will issue to the third parties, in the agent's own name, all the *tax invoices and *adjustment notes relating to those supplies; and
 (ii) the principal will not issue to the third parties any tax invoices and adjustment notes relating to those supplies; and
 (e) the arrangement ceases to have effect if the principal or the agent, or both of them, cease to be *registered.

153‑55  The effect of these arrangements on supplies

 (1) A *taxable supply that the principal makes to a third party through the agent is taken to be a supply that is a taxable supply made by the agent to the third party, and not by the principal, if:
 (a) the supply is of a kind to which the arrangement applies; and
 (b) the supply is made in accordance with the arrangement; and
 (c) both the principal and the agent are *registered.

 (2) In addition, the principal is taken to make a supply that is a *taxable supply to the agent. This supply is taken:
 (a) to be a supply of the same thing as is supplied in the taxable supply (the agent's supply) that the agent is taken to make; and
 (b) to have a *value equal to 10/11 of the amount that is payable to the principal by the agent in respect of the agent's supply.
The agent is taken to make a corresponding *creditable acquisition from the principal.

 (3) If the principal pays, or is liable to pay, an amount, as a commission or similar payment, to the agent for the agent's supply to the third party:
 (a) for the purpose of paragraph (2)(b), the amount payable by the agent to the principal is taken to be reduced