While GST administration in Singapore is coming to the 24 years mark, GST registered small and medium enterprises (SMEs) are still playing catch up in terms of GST risk management and alignment of GST updates to match the practical aspects of running business as usual.
Considering GST is a transactional based tax and there are inherent risks on the supply (e.g. direct deductions of certain items from employee payroll might trigger a need to consider GST) and purchase perspective (e.g. a supplier who provides us with a tax invoice with GST might not be GST registered), GST registered SMEs who have not diligently managed GST risk from such angle could be in for hard landing and the financial consequences may also be significant.
A Highlight of Key Areas:
- Realignment of GST concepts
- Common GST slip-ups made by SMEs
- GST implications relating to recovery of expenses (e.g. meals, transport, dormitory) and direct deductions from payroll (e.g. staff pass, medical co-payment)
- Art of managing the GST reporting for SMEs
- Importance of 12 months rule relating to accounts payable
- Sharing of de-minimis rule and its application
- Ring fencing the GST risks for SMEs
- Using Technology to co-manage GST risk
- Tapping the voluntary disclosure incentive to contain penalty exposure on incorrect classifications with GST impact