The rules to determine the GST treatment on a recovery of expense can be confusing. How do you decide whether the recharge of expense to an overseas person qualifies for zero-rating? Do you look at where the services are performed, the bill-to party or where the goods are located?
What happens if you recover the expenses at cost, or with a mark-up? What happens if the recharges of expenses are disallowed expenses in the first place?
We recognise that one will only be able to effectively determine the correct GST treatment on a recovery of expense by first understanding the basic rules on GST. We have developed a ten hour advanced course which will help you to decide the GST treatment on that cost recovery.
If you think that all services provided to an overseas person qualify for zero-rating under the “international services” provision, it is time for you to attend this course to correct the common misconception.
Module A: International Services -- Day 1 (23 March 2021, Tuesday)
9 am to 11.30 am
- Common misconceptions on international services
- What qualifies as international services
- Transportation services
- Services performed wholly outside Singapore
- Services directly in connection with land or goods outside Singapore
2 pm to 4.30 pm
- What qualifies as international services
- Services provided to overseas person
- The terms “directly in connection with” and “directly benefit”
- Services relating to qualifying ships and aircraft
- Other international services (e.g. advertisement, telecommunication, sea and air container, co-location services, trust services etc)
- Case study on common business scenarios
Module B: Reimbursement and Disbursement -- Day 2 (25 March 2021, Thursday)
9 am to 11.30 am
- Common misconceptions on recovery of expenses
- The rules for differentiating between a reimbursement (taxable) and disbursement (non-taxable);
- The GST treatment for reimbursement -- Recovery of expenses is ancillary to a primary supply
- Common business examples to illustrate the application of the GST rules for such recharges.
2 pm to 4.30 pm
- The GST treatment for reimbursement -- Recovery of expenses is separate and not ancillary to a primary supply
- Recovery of expenses at cost and with mark-up
- Recovery of expenses that are disallowed under the GST Act
- Recovery of expenses that are exempt in nature (e.g. bank charges)
- Cost-pooling arrangement and pass-through cost
- Common business examples to illustrate the application of the GST rules for such recharges.
- GST controls on the recovery of expenses - how to do it right every time?
- IRAS voluntary disclosure programme - what if you have done it wrongly?