Singapore Issues GST Bulletin Issue 22: guidance on certain common mistakes to avoid

The bulletin also provided guidance on certain common mistakes to avoid. This includes charging and accounting for GST on the net difference for trade-in goods, which is incorrect. For example, if a customer trades in an old computer for SGD 300 when buying a new computer for SGD 1,000, GST should be charged on the full SGD 1,000 and not the SGD 700 net difference. Further, if the customer is a GST-registered business, the customer should charge and account for GST on the trade-in value of SGD 300.

Another common mistake is not charging GST on inter-company transactions. The bulletin clarifies that GST is a broad-based consumption tax levied on all local supplies of goods and services, including inter-company transactions.

Source Orbitax

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