Customer accounting for GST for prescribed goods

IRAS released this draft e-tax guide on 24 April 2017 which states that it will be implementing GST customer accounting in relation to transactions of prescribed goods that exceeds $5,000 from 1 Jan 2018.

What is GST customer accounting?

The responsibility for accounting for output tax on the sales of the prescribed goods will shift from the GST-registered supplier to the GST-registered customer. The GST-registered customer is the party that needs to account for the output tax to IRAS, not to the supplier. In other words, he will only pay the invoiced amount before GST.

What are the prescribed goods?

Currently, it refers to mobile phones, memory cards, and off-the-shelf software.

What this means is that in transactions of prescribed goods, the supplier will not be allowed to collect the GST from the customer. This will also allow the customer to account for the GST at the time of filing his GST return.

To know more about GST filing in Singapore, get in touch with a GST expert now!

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ACRA Cancels Registration of Filing Agent and Qualified Individual for AML/CFT Breaches

The Accounting and Corporate Regulatory Authority (ACRA) had cancelled the registrations of filing agent (RFA) and qualified individual (RQI) on 18 January 2024. The registrations were cancelled in view of breaches of anti-money laundering and countering the financing of terrorism (AML/CFT) controls under the ACRA (Filing Agents and Qualified Individuals) Regulations 2015 (the “ACRA Regulations”).

Some of the basic AMT/CFT controls that a RFA and RQI are required to exercise are as follows:

(a) perform additional customer due diligence measures when a customer is not physically present during onboarding;

(b) inquiring if there exists any beneficial owner in relation to some of its customers; and

(c) perform risk assessments i

RQIs and RFAs provide corporate secretarial services for business entities, such as helping customers to incorporate companies, file annual returns and fulfil other filing requirements under the Companies Act 1967 or other Acts under ACRA’s purview. RQIs and RFAs are required to perform customer due diligence measures in accordance with the ACRA Regulations, and conduct their business in such a manner as to guard against the facilitation of money laundering and the financing of terrorism. RQIs and RFAs must also satisfy statutory requirements such as being fit and proper persons, to be registered or continue to be registered.

RQIs and RFAs who breach their statutory obligations may be subject to enforcement actions, such as financial penalties of up to $10,000 or $25,000 per breach respectively or have their registrations with ACRA suspended or cancelled.

Therefore, RQIs and RFAs play an important role in helping to detect and combat illicit activities.

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