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| Treatment of
GST for Distributors |
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There
are a range of possible options for dealing with G.S.T. for distributors.
The following is the outline of some of the options available
and is by no means a definitive list. |
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| Buyer Created Invoices |
Getting GST Invoices
from your distributors can be a difficult task when it comes
to paying bonuses, overrides or commissions and so it is generally
easier for Direct Selling Companies to request from the Inland
Revenue permission to issue Buyer Created Invoices for the payments
you make. This means that the Company only has to obtain
the GST number from the distributor once (usually when they sign
up) |
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This is done by
a letter request to the Inland Revenue requesting to be approved.
You should give good reasons why this would be beneficial in
ensuring correct accounting and providing a substantial audit
trail for your distributors. |
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| GST
on Commissions where no ownership changes |
GST is added to
the commission paid to the distributor and claimed back by the
company in the next return. The distributor must pay this GST
with their next return less their inputs. |
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