GST e-tax guide on Partial Exemption And Input Tax Recovery
This is an update on the GST e-tax guide on Partial Exemption and Input Tax Recovery and to update the list of regulation 34 businesses to include persons required to be licensed under the Payment Services Act (e.g. money changers and remittance business) and traders of digital payment tokens.
The Payment Services Act is a combination of the old Payment Systems (Oversight) Act and the Money-Changing and Remittance Businesses Act to streamline the payment services under a single legislation. The Payment Services Act also takes into account the risks in the new payment services.
Partial exemption is a high risk area for GST compliance (think about reverse charge) but there are also opportunities to increase the input tax recovery rate for certain businesses.
Feel free to contact us to see how we can help in increasing your input tax recovery rate.