Wholesalers usually buy and sell electronic goods such as laptops, computer accessories, mobile phones and cameras. Many wholesalers export their goods, in which case no GST needs to be charged (zero-rating). However, GST has to be charged on all their local sales. To prove that goods are exported so that GST need not be charged, wholesalers need to maintain the relevant export documents as listed in our e-Tax Guide ‘A Guide on Exports' (556KB).
Wholesalers can claim the GST they paid on their purchases and imports. Some common errors made by wholesalers in the past include:
- Claiming input tax (GST paid on purchases) twice on the same tax invoice;
- Claiming input tax on invoices from suppliers who are not GST registered;
- Claiming input tax on tax invoices addressed to another company;
- Claiming input tax by applying the GST rate on all purchases made, including purchases for which no GST has been paid.