Customer accounting was recently implemented on the supply of certain prescribed goods by GST-registered suppliers to their GST-registered customers.
With effect from 2020, GST will be applied on imported service in the context of business-to-business (“B2B”) transactions by way of a reverse charge mechanism. The taxation of business-to-consumer (“B2C”) transactions will take effect through an Overseas Vendor Registration (“OVR”) mode.
It is critical that organisations understand the impact of these changes to ensure that their staff and systems are well-equipped to comply with the new requirements. This workshop will give you a good understanding on the features of the customer accounting, reverse charge mechanism and the related registration and compliance rules.
This comprehensive workshop is designed specifically to provide you with a practical update on the recent and upcoming GST changes. Practical tips and pointers will be discussed to help your organisation make a seamless transition to implement the GST changes.
Summary of 2019 Updates/Developments
Key Updates pertaining to GST in Budget 2020
Customer Accounting for Prescribed Goods
- What is customer accounting?
- What are the prescribed goods?
- What is excepted supply?
- Common business scenarios
- GST treatment / reporting
- GST-registered supplier making a relevant supply
- GST-registered customer receiving a relevant supply
- Some Common Errors found so far
Taxing Imported Services by way of an Overseas Vendor Registration Regime
- Business to Consumer (B2C) supplies of digital services
- Scope of digital services
- When is operator of electronic marketplace regarded as the supplier?
- GST registration requirements for overseas suppliers and overseas electronic marketplace
- Simplified Pay-only Registration Regime
Reverse Charge Mechanism
- Who is affected by reverse charge on imported services
- How reverse charge works and its impact on partial exempt businesses
- Types of services subject to reverse charge
- Transitional Rules
- Registration and reporting requirements
- Impact on inter-branch and intra-GST group transactions
- Practical challenges faced by organisations in accounting for reverse charge