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Singapore Updates GST Guides for Property Owners and Property Holding Companies and for Charities and Non-profit Organisations — Orbitax Tax News & Alerts

The Inland Revenue Authority of Singapore (IRAS) has published an updated e-Tax Guide, GST: Guide for Property Owners and Property Holding Companies (Seventh Edition). This guide explains how GST affects property owners or property holding companies, including guidance concerning the application of GST for property transactions and whether an owner/company needs to register for GST if involved in property transactions. This guide also clarifies the type of property that qualifies for GST exemption. The updates in the latest edition of the guide primarily concern changes with effect from 1 January 2023, including new requirements to apply the reverse charge mechanism for imported low-value goods, the requirement to include the value of imported low-value goods in considering the liability to register for GST under reverse charge, and changes in residual input tax apportionment formula to exclude imported low-value goods.

The IRAS has also published another updated e-Tax Guide, GST: Guide for Charities and Non-profit Organisations (Sixth Edition). This guide explains the application of GST on activities carried out by charities and non-profit organisations, as well as the distinction between business and non-business activities, the types of transactions for which GST is chargeable, and the rules for claiming GST incurred on business expenses. The updates in the latest edition of the guide include guidance regarding the requirement to apply the reverse charge mechanism for imported low-value goods from 1 January 2023, as well as guidance concerning concessionary tax treatment for institutions of a public character (IPCs) and registered charities and guidance on the valuation methods to determine the market price of auctioned items.