On or about 13 December 2018, the Inland Revenue Authority of Singapore (IRAS) has published the e-Tax Guide on GST: Customer Accounting for Prescribed Goods (Second Edition) which replaces the first edition published on 15 September 2017.
The amendments clarify the meaning of “off-the-shelf software” and to provide more examples of mobile phones, memory cards and off-the-shelf software which will fall within and outside the meaning of “prescribed goods”.
It also explain the GST input tax adjustments to be made by the GST-registered customer when credit notes are issued to cancel an original supply.
Customer accounting for certain prescribed goods will be implemented from
1 Jan 2019 to deter fraud schemes where the seller absconds with the GST
collected, but businesses further down the supply chain continue to claim the
input tax. It will be applicable to supplies of mobile phones, memory cards
and off-the-shelf software, which are commonly used in these fraud schemes.
The following are the summary of updates and amendments made:
- Editorial changes to the guide
- Updated paragraph 5 to clarify the meaning of ‘off-the-shelf software’ and to provide more examples of mobile phones, memory cards and off-the-shelf software which will fall within and outside the meaning of ‘prescribed goods’
- Updated paragraphs 9.5.2 and 9.5.3 to explain the GST input tax adjustments to be made by the GST registered customer when credit notes are issued to cancel an original supply
Source: IRAS website, 16 December 2018