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Guide on Reimbursement and Disbursement of Expenses

The Singapore authorities issued a guide regarding reimbursements and disbursements of expenses. This e-Tax Guide is relevant to all GST-registered businesses that incur expenses and subsequently recover the expenses from another party such as their employees, customers, related corporations or suppliers. It provides clarification on the following:

  1. The GST principles for differentiating between a reimbursement and disbursement;
  2. The GST treatment for reimbursement of expenses; and
  3. The concession on claiming of input tax on disallowed expenses where such expenses are recovered from another business.

It also illustrates the application of these principles on some common business examples.

Generally, you are acting as a principal in procuring the goods or services if you contract with the supplier in your own name or capacity.

Source: gov.sg

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