Supply by an Agent

Supply by an Agent

The conditions of supply of goods or services by an agent shall be determined as follows:

-A supply of goods or services made by a person as an agent for the benefit of another person who is a principal shall be considered a supply by the principal.

– Agent shall account for VAT on the commission charged on the supply of goods or services on behalf of another person who is his/her principal. Where both the principal and the agent are taxable persons, the VAT charged on the commission of the agent shall be considered as input tax of the principal.

Please note both cases above applied when principal is resident taxpayer.