On or about 18 September 2019, the Inland Revenue Board of Singapore (IRAS) has published the fifth edition of the e-Tax Guide on GST: Guide for Property Owners and Property Holding Companies. It replaces the fourth edition published on 12 July 2019.
In this fifth edition, the following revisions were made:
- New paragraphs 2.5, 2.6, 4.3, 6.7, 6.8, 9.4 and 9.6 on imported services
- Amended paragraph 6.1 on registration liability
From 1 January 2020, a GST-registered person who procures services from overseas suppliers (“imported services”), may be subject to reverse charge if the business is not entitled to full input tax credit or if the business belong to a GST group that is not entitled to full input tax credit. The application of reverse charge will mean that the business has to account for GST on the imported services as if it is the supplier, except for certain services which are specifically excluded from the scope of the reverse charge. Business will also be entitled to claim the corresponding GST as input tax, subject to the normal input tax recovery rules.
For those who are in the business of selling property and are not register for GST may have to register for GST as a result of the sale of a non-residential property as such sale is considered a taxable supply. The business need not be one that is registered with ACRA.
Source: IRAS website, 18 September 2019