We still know what you did (in the GST return) last summer...
THE introduction of Goods and Services Tax (GST) on imported digital services from Jan 1, 2020 as announced in the 2017 Budget has certainly raised public interest.
However, what is perhaps a more muted yet significant development that comes into effect on Jan 1, 2019, is the introduction of "customer accounting" rules that impose the obligation to charge and account for the GST on the GST-registered customer, instead of the supplier of prescribed goods (mobile phones without subscription plan, memory cards and off-the-shelf software) that exceed the value of S$10,000 (before GST).
The impact of the "customer accounting" rules is more widespread than what many think. Not only does "customer accounting" affect the manufacturer, the retail intermediary or distributor of the prescribed goods, it is also relevant for businesses that buy such goods in bulk.
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