How are trade-in transactions treated for GST purposes in Singapore?
A trade-in transaction is generally not treated as a single supply for GST purposes. Instead, there are typically two separate supplies involved in the transaction.
What are the two supplies in a trade-in transaction?
A trade-in transaction generally involves:
A supply of the used item by the customer.
A supply of the new item by the supplier.
Is GST chargeable on both supplies in a trade-in transaction?
Yes. Where both the customer and supplier are GST-registered in Singapore, GST may need to be accounted for on both supplies involved in the trade-in transaction.
