20180328 (Wed)
Little known fact about GST in Estate Agency Practice. GST on professional fee?
Some people try to save on commission when dealing with agents and brokers. Apparently, some discounts are given being “illegal”. As if he is illegal, then there is no GST. Wah, you save the 6% GST! How I wish this could be true in real life. Who pays for GST? He who appoints the representative, because he receives the service of estate agency. That is most of the time the owner. And, the fact that he who does not collect GST is not the issue of its legality – is little known. Irrespective of who this representative is (being a illegal broker or registered agent), the duty to pay GST is not about his legality, but that a service had been rendered. Indeed, if you are an owner, and you don’t pay GST to an agent, the agent has to pay it out from his commission received. That is “GST inclusive”. So, engaging an illegal broker, it is “GST inclusive”, that is all! NOT because he is illegal, then there is no GST. If he ever be caught, he is himself in deep trouble. And, if that is the choice – you don’t want to pay GST, you can mention it to the registered agent, he might just waive it for you as well! In such case, he pays it himself.