The GST on agent are one of the GST that they are provide the supply on behalf of their principal. Even though the principals are liable to the GST, However, the if the agent is a register person, he is liable to charge the GST on the supply of their services. Therefore the agent are entitle to claim an input tax.

1. GST ON AGENT
Loh Boon How
Chartered Accountant
Revised
On 3/1/15

2. WHO ARE THE AGENT?
 Agents acting on behalf of the principals
An intermediary party who is authorised by another
party to do something on that party’s behalf in
arranging supplies of goods and services.
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B.H.Loh&Associates

3. WHO ARE THE AGENT?
Registered Agent (Motor
vehicle agents & travel
agents)
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B.H.Loh&Associates
Registered
Principal
Liability to account for
GST (Supply of goods)
and to pay GST
To account the
GST on
commission
(Supply of service)

4. WHAT ARE THE CONDITION TO ACT AS
AGENT?
 Whether a written or oral agreement ：
1. An established the relationship between
principal and agent (an agent arrange the
transaction),
2. An agent will not be the owner of the
goods or use any of the services,
3. An agent will not alter the nature or value
of the supply. 4
B.H.Loh&Associates

5. WHAT ARE THE ROLE OF AN AGENT?
 Receive or deliver goods,
 Hold a stock of goods for his principal; or
 Make or receive payment.
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B.H.Loh&Associates

6. HOW TO COMPUTE THE THRESHOLD?
The value of services to the principal,
+ The value of taxable supplies that you make
in your own name,
- The value of supplies arranged for the
principal
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B.H.Loh&Associates

7. WHAT ARE THE TYPE OF AN AGENT?
 Agents acting on behalf of the principals
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B.H.Loh&Associates
Principal Agent Customer
Supply of
services
Supply of goods
Insurance
company
Insurance
agent

8. WHAT ARE THE TYPE OF AN AGENT?
B.H.Loh&Associates
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Under agent
name
Customer
GST on service
Registered
principal
GST on
product
2. The supply under the agent name
Tax invoice
under the
agent name
GST on
agent
Unknown
principal
Agent
assume all
risk
Supply

9. WHAT ARE THE TYPE OF AN AGENT?
B.H.Loh&Associates
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Registered
local agent
Customer
Supply
Payment
with GST
Supply
Payment
with GST
Oversea principal
Oversea supply (Not
belong in Malaysia)
CommissionAct on behalf
3. The agent act on behalf oversea supply

10. WHAT ARE THE TYPE OF AN AGENT?
B.H.Loh&Associates
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Registered
local agent
Customer
Supply
Payment
with GST
Supply
Payment
with GST
Oversea principal
Local supply (Belong in
Malaysia)
CommissionAct on behalf
3. The agent act on behalf local supply
The supply under
the agent name

11. WHAT ARE THE TYPE OF AN AGENT?
B.H.Loh&Associates
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Registered
local supply
Customer
Supply
Payment
with GST
Payment
with GST
Oversea supply
Local manufacturer
Commission
Order
4. The agent act on behalf local manufacturer

12. THANK YOU
B. H. Loh & Associates
Address :
No. 1-3-15, Goldhill Complex,
Tingkat Paya Terubong 1,
11060 Penang.
H/P No. : 016-4893382
Email : bhlohass@gmail.com
Web-site / facebook : bhloh.com.my
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B. H. Loh & Associates