Overview:

Did you know that if you provide hire purchase financing, you will need to register for GST when your loan book exceeds S$1million in a year?  Or if you are a used car dealer, you will also need to register for GST if the total sales of your used car exceed S$1million.

A common misconception among finance companies is that GST does not apply to them because their main income, interest income, is GST-exempt. However, when hire purchase loans exceed $1 million, GST registration becomes mandatory, potentially exposing the company to compliance risks. 

This webinar addresses the critical GST implications for motor vehicle dealers, financial and credit company engaged in hire purchase arrangements. We will explore the often-overlooked nuances of GST rules, supported by insights from the latest IRAS e-Tax guides on Motor Traders and Hire Purchase.

Key Takeaways:

• GST registration liability for finance company and motor vehicle dealers
• Understand why providing hire purchase financing constitutes a taxable supply.
• GST reporting requirement for sale of new car, gross margin scheme for used car and discounted sales price scheme
• Learn the GST reporting obligations and compliance requirements associated with hire purchase arrangements.
• Why you cannot claim your input tax in full when you receive interest income from hire purchase financing
• IRAS voluntary disclosure programme

Who Should Attend:

This webinar is tailored for directors, management, finance and tax professionals in the motor trading and finance company providing hire purchase financing.  It is particularly relevant for those seeking to understand the intersection of GST and hire purchase financing and to avoid common compliance pitfalls.

Trainer Profile

      Eddie Soh 

With more than 20 years of practical GST experience gained from working at Inland Revenue Authority of Singapore as a tax auditor and big four accounting firm (PwC) as a tax advisor, Eddie is the subject matter expert you go to when you need advice on goods and services tax (“GST”) matters.

He is an accredited tax advisor (GST) with Singapore Chartered Tax Professional and he speaks regularly at public GST workshop and seminars. The primary objective of conducting workshop and seminars is to share the knowledge gained from his experience and his long term goal is to digitalise the knowledge so that it can be easily accessed by others.

Eddie is a GST advisor by profession and he finds joy in solving your GST problem. Having led 43 multi-national companies to Assisted Compliance Assurance Programme (“ACAP”) premium status, he now advises clients on the best practices that should be in place to prevent and detect GST errors.