Can free samples attract GST in Singapore?
Yes. Businesses may need to account for deemed output GST on free samples distributed to customers.
When does deemed GST not apply to free samples?
Deemed GST may not apply where the samples:
* Differ from the regular products sold by the business; and
* Are clearly labelled with terms such as “Not for Sale” or “Sample only”.
When can deemed GST apply on free samples?
If the prescribed conditions are not satisfied, the distribution of free samples may be treated as a deemed supply and output GST may need to be accounted for.
Why should businesses review their free sample arrangements?
Businesses should review their sample distribution practices to ensure the correct GST treatment is applied and to avoid unnecessary GST costs.
