The prescribed goods are mobile phones, memory cards and off-the-self software.
Customer accounting shifts the responsibility to account for GST on the sale of prescribed goods from the supplier to the GST-registered customer. The main objective of introducing customer accounting is to deter potential fraud schemes where the seller absconds with the GST collected, but the buyer further down the supply chain claims the input tax.
What does this mean for you?
The specific GST reporting requirements for customer accounting requires major changes to the accounting system for those companies that trade in and procures prescribed goods.
It is recommended to start the process of implementing the customer accounting rules early. Besides having to identify the goods and the types of transactions that would come in scope, Client would have to engage the people from the business and the IT department as the changes to the sales process and accounting system to cater for the different business arrangements would take some time.
If you wish to have more details, feel free to contact:
Soo How Koh
+65 6236 3600
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