Can deposits and downpayments attract GST in Singapore?
Yes. GST may be chargeable on deposits and downpayments collected from customers.
When is GST chargeable on deposits or downpayments?
GST is generally chargeable where the deposit or downpayment represents partial payment for goods or services supplied. The GST must be accounted for in the same accounting period that the payment is received.
Are refundable security deposits subject to GST?
No. GST is generally not chargeable where the payment is a refundable security deposit and not consideration for goods or services supplied.
Why is it important to determine the nature of the deposit?
Businesses should evaluate whether the payment is a partial payment or a refundable security deposit, as the GST treatment may differ.
