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Re: GST reporting on agency arrangement

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Dear tax counsel from ATO,

 

I have 4 business consultants who each use their family trust/unit trust to trade under the same business name and share the same office, this is obviousy deemed to be a general law partnership even though there is no formal partnership agreement in place. Each family trust/unit trust are doing their own quarterly BAS lodgement at moment.

 

After a lengthy discussion among consultants, a new company (A) was set up recently as agent to invoice their clients on behalf of 4 entities, a formal agency agreement is in place and subdivision 153B was stipulated as an option of GST reporting. 

 

I've read through GSTR 2000/37 yet it is still very confusing on what i should do in term of GST reporting, does each family/unit trust is still required to lodge GST via BAS, or Is company A (agent) the only entity who is required to report GST in this case?

 

Your support and guidance on this would be much appreciated.

 

 

 

 

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Most helpful response

ATO Certified Response

ATO Community Support

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Hi @JWMexSyd,

 

I really appreciate the research you've done.

 

The new company (A) acting as the agent would lodge the BAS.

 

We have some excellent information on our website about agents and GST.  If you go to section 1.1.2 - Agents acts as principle under Subdivision 153-B you'll find a further explanation.

 

Take care and stay safe.

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @JWMexSyd,

 

I really appreciate the research you've done.

 

The new company (A) acting as the agent would lodge the BAS.

 

We have some excellent information on our website about agents and GST.  If you go to section 1.1.2 - Agents acts as principle under Subdivision 153-B you'll find a further explanation.

 

Take care and stay safe.