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June 5, 2023
Question

GST Code

  • June 5, 2023
  • 1 reply
  • 0 views

Hi

 

As We just recently take over to key in quickbook.

 

Based on previous account lady that keyed in quickbook, all the entertainment expenses she put GST under 0% ZP is it right? 

1 reply

April 26, 2024

Hi LM69,

 

I'm assuming you're based in Singapore since this was posted on SG support forum.

 

Allocating GST rate is only a part of the process. Claiming GST (input) is based on certain conditions:

1. You are GST-registered;

2. The goods or services are supplied to you or imported by you;

3. The goods or services are used or will be used for the purpose of your business;

 

If you're not GST-registered, you should not be claiming GST at all (let along 0% ZP). It should be out of the scope of GST.

 

If you've met the first two, the question should be whether your entertainment expense is incurred for the purpose of carrying out your trade/business. If no, it is again out of scope. If yes, you should apply the prevailing GST rate (9% in 2024).

 

More information can be obtained from IRAS' website: 

https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/claiming-gst-(input-tax)/conditions-for-claiming-input-tax

 

Cheers,

William