No tax is charged on this type of bill since the Agent and Principal concept is applied. This situation occurs when the organizer (Agent) collects an amount intended for Thepointofsale.com (Principal).

Definition of Agent and Principal

In general terms, an Agent is a person who performs specific tasks for or in place of another person (the Principal). An Agent is considered to be an extension of the Principal, and, as a result, the actions of the Agent are generally regarded as being those of the Principal.

Box office sales (offline)

During a box office sale, the organizer (Agent) sells tickets including ticketing fees intended for Thepointofsale.com (Principal). During this sale, the organizer's taxes are applied to the unit cost of the ticket, while Thepointofsale.com's taxes are applied to the ticketing fees.

Since the organizer acts as an Agent for Thepointofsale.com, they must return the ticketing fees including taxes (those of Thepointofsale.com). The GST and QST of Thepointofsale.com will not be broken down on the bill or report since it will be Thepointofsale.com that will transfer them to the Government.

As such, the organizer (Agent) will return toThepointofsale.com (Principal) an amount of $1.14 in ticketing fees for each sale made at the box office.

Organizer’s fee

If the organizer adds an additional fee to the unit cost of their tickets (i.e. the organizer's fee), it will not be included in the ticketing fees to return toThepointofsale.com. According to the Agent and Principal concept, this amount is kept by the organizer (Agent), considering their taxes will be applied to this additional fee.

Thus, the organizer's fee is included within the ticketing fees in the buyer's bill details but not at the moment of billing between the organizer and Thepointofsale.com. Instead, it will appear as Organizer fees on the credit side and in the Thepointofsale.com report.

To learn more about the Agent and Principal concept, visit the page below:

Remittance of taxes

The organizer is responsible for the remittance to the Government of applicable taxes on the unit cost of their tickets. They can find the total amount to remit in these sales reports.