The IRAS has updated their website content on deposit on 6 November 2019. The gist of the update is that even if a deposit is refunded to the customer when the supply is cancelled, it is not treated as a refundable deposit for GST purposes.

deposit

In other words, GST is chargeable at the time of receiving the deposit. It is time to review your agreement with your customer to determine whether the upfront payment that you received is advance payment or security deposit and ensure that GST is charged on a timely basis.

If you wish to receive this update via email, please follow us on LinkedIn and subscribe to our mailing list.

GOT A QUESTION?
CONTACT US
×

Hello!

Click one of our representatives below to chat on WhatsApp

× Ask JedTax