Customer

 

  • Businesses may provide gifts and samples to their clients or prospective customers in the course of their business activities. The GST rules for such gifts and samples are explained here.
  • Charging and accounting for GST when you provide discounts and rebates such as prompt payment discounts and volume rebates.
  • Your services are considered international services if they fall within the provisions under Section 21(3) of the GST Act. International services are zero-rated (i.e. GST is charged at 0%). Depending on the nature of service, you may also need to determine the belonging status of your customer (i.e. whether your customer is a local person or an overseas person) before zero-rating your supply of services.
  • GST must be charged on any goods sold or delivered in Singapore even if the goods are meant for overseas customers unless the exception applies.
  • When debts cannot be recovered, you may apply for bad debt relief to recover GST charged but unpaid by your customers. Should your customer subsequently pay you, you must repay the relief claimed.
  • Documents to issue when you replace or give a refund for returned goods.
  • To maintain competitiveness and customer goodwill, you may choose to absorb the GST payable by your customer. In doing so, you have to treat the sum of money received from your customer as inclusive of GST.
  • The GST treatment for the recovery of expenses from another party such as your employees, customers, related corporations or suppliers, depends on whether the expenses are incurred by you as a principal or as an agent.
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  • The GST treatment of voucher depends on whether it is a Multi-Redemption Voucher (MRV) for GST purpose, and whether it is sold by the issuer or intermediary.
  • Compensation is a sum of money the aggrieved party receives from the defaulting party due to certain obligations/conditions in the contract not met.
  • Whether GST is chargeable on the full (gross) or subsidized (net) value of the services depends on

    whom the subsidies/grants are awarded to (i.e. the GST-registered supplier or customer).

  • GST-registered businesses may provide GST refunds to tourists as an independent retailer or by engaging the services of a Central Refund Agency. In either case, they need to do so under the electronic Tourist Refund Scheme (eTRS).