Gst Returns by Retailers- Uploading Electronic Cash Registers
The time of supply rule determines when you should study your supplies and account for GST in your GST return.
On this page:
Fourth dimension of Supply Rules
For most transactions, a supply is treated as taking identify (and output tax will be accounted for) at the before of when:
- An invoice is issued; or
- Payment is received.
The higher up time of supply rule volition also apply to digital services supplied past an overseas vendor registered under the overseas vendor registration regime.
Example 1: Time of Supply
In this example, the time of supply based on the earlier of the two events, is when the invoice is issued (i.eastward. ane Mar 2020). Equally such, the supply should exist reported in the GST return covering the period of Mar 2020.
Determining When an Invoice is Issued
The appointment of issuance of any type of invoice will trigger the fourth dimension of supply for GST purposes. This includes a revenue enhancement invoice as well as any certificate (e.grand. debit note) that serves every bit a bill, for payment for supplies made by a GST-registered supplier.
In full general, documents such as sales order, pro-forma invoice, statement of accounts and letter/statement of claims are non considered equally invoices for GST purposes. These documents are often not billing for payments and would therefore not be treated equally invoices based on normal commercial practices.
For details, please refer to the eastward-Revenue enhancement Guide GST: Fourth dimension of Supply Rules (PDF, 1128KB).
Determining when Payment Is Received
The engagement when payment is received from your customers is one of the events that triggers the time of supply. Payments can be received through the various modes as follows:
- Greenbacks
Payment is treated as received on the date yous receive the cash from your client. - AXS & SAM Machines/NETS Facility/Credit Card etc.
Payment is treated as received on the date these establishments transfer the money to y'all. - Telegraphic Transfer
Payment is treated as received on the engagement your bank receives the money. - Cheques
Payment is treated as received on the date you nowadays the cheque to the bank (i.e. the bank-in date). For a bank check that is dishonoured, payment is treated every bit received on the appointment you lot present the new check to the bank.
Case ii: Date Payment is Received
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The date when the cheque was banked in (iv Mar 2020) will be treated equally the engagement of payment received. Therefore, the supply will be treated as taking identify on 4 Mar 2020.
Supplying Service on a Continuous Basis
You are supplying a service on a continuous basis if the service:
- Stretches over a menstruation of several months or years (e. thou. maintenance services, construction services, rental); and
- Y'all receive periodic payments.
The supply is treated equally taking place at the earlier of when:
- Your customer pays you lot; or
- You issue an invoice.
Goods Supplied on Approval or "Sale or Return" Terms
Yous may supply goods to your customers under an approval or "auction or return" terms. Under such terms, the sale does not have place until the customer approves the goods to confirm the sale.
The fourth dimension of supply volition exist treated equally taking identify at the earliest of the following:
- When any payment in respect of the supply is received;
- When an invoice in respect of the supply is issued; or
- 12 months after the removal of goods.
The payment received must be to belch an obligation to pay for the supply arising from the adoption of the sale.
Security Deposits
The mere receipt of payment will not exist regarded as consideration received if it is held as security pending the adoption of the sale.
If such security deposit is collected upfront, payment is regarded as received but when the deposit is applied as all or function of the consideration for the supply, following the adoption of the sale.
In one case in that location is a payment received or an invoice issued, GST has to be deemed for based on the full selling toll of the goods.
Cooling Menstruation
The to a higher place treatment for goods supplied on approving or "sale or return" terms must exist distinguished from a sale where you provide a cooling menses to your customer to return the appurtenances.
For such sales, the general time of supply would still apply. If your customers returned the goods during the cooling period, you should outcome a credit note to nullify the sale. Upon issuing the credit notation, you tin reduce the output tax previously deemed for in your GST return.
Imported Services subject to Opposite Charge
With effect from 1 Jan 2020, if y'all are a business organisation that is not entitled to full input tax credit, y'all are required to perform reverse accuse and account for GST on the value of services procured from overseas suppliers.
A opposite charge transaction is treated as taking place (and output taxation will be deemed for) at the earlier of when:
- An invoice is issued; or
- A payment is made.
Example 3: Imported Services discipline to Contrary Accuse
In this instance, the time of supply based on the before of the two events, is at the point when payment is fabricated (i.east. xv Jul 2020). As such, the supply should be reported in the GST render covering the period of Jul 2020.
For more data on the time of supply rules for contrary charge transactions, please refer to our eastward-Tax Guide GST: Taxing imported services by way of contrary charge (PDF, 1173KB)
Source: https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/charging-gst-%28output-tax%29/when-to-report-supplies-in-gst-returns
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