IRAS has 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 need to account for the output tax to IRAS, not to the supplier. In other words, he will only pay the invoiced amount before GST.
2. What is 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.