Home Forums Selling online Consignment Products and GST

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  • #1227790
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    I have a small business and we are looking to offer products to some local stores on a consignment type agreement, the stock will always remain ours but when sold the local store will get a kickback based on the particular product sold.

    So my question is how can we set this up so our goods can be sold via their stores and accept payment/provide a receipt but not have them incur GST?

    would it be something as simple as providing them a receipt book and they could use it for a sale and then if payment were done via card they would have to pay us minus the agreed kickback then we would add it as a sale in our accounting software and add GST?

    Trying to make it as easy as possible but at the same time not too complicated that they just won’t bother.

    Any help or suggestions are appriciated.

    Paul – FS Concierge
    • Total posts: 3,146

    Trying to guess the rules in a case like this is playing with fire.

    You need advice from an Accountant.

    One thing to keep in mind is that the business that does the actual selling to the end user also needs to be compliant with GST laws.

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