What are the GST implications for the fee or commission charged on travellers cheques transactions?
As a principal: No GST is payable on the commission or fee when you buy or sell travellers cheques or foreign currency and you are acting in your own right, and not as an agent on behalf of someone else. This is because you are financial supply provider and have a direct interest in the financial supply.As an agent: If you buy or sell travellers cheques or exchange foreign currency on behalf of someone else, and are acting as an agent, GST is payable on the fee or commission you receive for those agency services. This is because you are a financial supply facilitator and are making a taxable supply.
