- 3 Marks
Question
An agent sold goods on behalf of a Principal. Who is the taxable person here? If the agent was rather an auctioneer, who would have been the taxable person? (3 marks)
Answer
A supply of goods or services made by a person as an agent for another person who is the principal is a supply by the principal. The principal is the taxable person in this case. However, if the agent is an auctioneer, the supply of goods by auction is treated as a supply by the auctioneer for consideration in the course or furtherance of a taxable activity carried on by the auctioneer, making the auctioneer the taxable person.
- Tags: Agent, Auctioneer, Taxable Person, VAT
- Level: Level 2
- Topic: Value-Added Tax (VAT), Customs, and Excise Duties
- Series: NOV 2020
- Uploader: Joseph