- The updated e-Tax Guide, “GST: Guide for Motor Vehicle Traders (Eighth Edition),” has been published by the Inland Revenue Authority of Singapore (IRAS) for GST registered businesses selling new and/or second-hand motor vehicles.
- The guide explains the GST treatment applicable to motor vehicle traders and provides illustrations of GST computations for the sale of motor vehicles.
- All charges or payments related to the supply of motor vehicles are subject to GST, except for regulatory charges imposed by the Land Transport Authority on the sale of new vehicles.
- For new motor vehicles, GST is chargeable on the selling price excluding regulatory charges such as the Certificate of Entitlement (COE).
- For second-hand motor vehicles, GST computation depends on whether the sale is made under the Gross Margin Scheme (GST on the difference between selling and purchase price, no input tax credit) or the Discounted Sale Price Scheme (GST on 50% of the selling price, input tax credit allowed if conditions are met).
Source Orbitax
Latest Posts in "Singapore"
- Briefing document: Singapore GST InvoiceNow business guide
- Navigating Singapore’s e-Invoicing Transition: A Guide for Financial Leaders and Technologists
- IRAS Mandates InvoiceNow for Voluntary GST Registration: Streamlined E-Invoicing for Singapore Businesses
- Singapore Clarifies GST Registration: New FAQs on Thresholds, Special Cases, and Business Implications
- IRAS Updates FAQs on GST Registration Requirements for Businesses in Singapore, August 2025
