Commission-based insurance agent is usually selling different types of insurance such as:
- Income protection
Life insurance is exempt from GST so is treated as a ‘financial service’ for GST purposes.
Therefore, commissions earned that relate to life insurance are exempt for GST, whereas, medical and income protection insurance attract GST.
GST can’t be claimed on the expenses that relate to the selling of life insurance policies.
If you incur expenses that relate to both life insurance as well as other types of insurance, you will need to make an apportionment of those expenses.
If you have any queries whatsoever, don’t hesitate to contact your wellington accountant.