If an agent is claiming a reimbursement for a product or service they obtained in doing the authorised work for the principal (disbursement), and are passing the costs onto the principal on an invoice, does the agent have to include GST on the claimed expense OR do they claim just the gross amount with no GST, and the agent claims the GST credit?
E.g. We received a claim invoice from the agent for $3500 with nil GST
The supplier invoice attached to the claim was $3500 inc GST
All entities are registered for GST