IRAS regulation - Displaying Prices (GST)

[Garf]

Based on information obtained from IRAS website, GST registered business must show GST-inclusive prices on all price displays (e.g. price tags, price lists, advertisements, publicity brochures, website). Prices that are quoted, whether written or verbal, must also be GST-inclusive. Failure to do so is an offence and offenders may be fined for up to $5000.

Quoting the following clauses but not the GST-inclusive prices is not acceptable:
"Prices stated are subject to GST"
"Prices stated are exclusive of GST"
"Prices stated are before GST"

Exception
An exception is made for businesses in the hotel and food & beverage (F & B) industries only. Due to the imposition of service charge, these businesses may have operational difficulties in displaying GST-inclusive prices. Therefore, they may display GST-exclusive prices for goods and services that are subject to service charge. However, a statement informing customers that prices displayed are subject to GST and service charge must be prominently shown.

IRAS Website Link:
IRAS: Displaying prices

 

[Red_Bean_Bun]

Re: IRAS regulation - Displaying Prices (GST)

Most workshop don't do that .....

 

[sszone]

Re: IRAS regulation - Displaying Prices (GST)

Most workshop don't do that .....

end up u guys might have increased prices.

eg. $1k job + 7% gst @ $70.00 = $1070.00

workshop probably will quote $1100 and work backwards instead for convenience sake, end up pay 30 bucks more.
so dun kpkb that prices gone up if that happens.

workshop wise, just give n take lor....if they quote u $1k and tell u got 7% GST, at least u know need to pay $1070.

this scenario is very different when compared to workshop that tell u 1k and keep mum abt any gst charges etc.
the crux is, did they tell u upfront so that there won't be any unpleasant surprises/misunderstanding later on.

rules are dead, humans are flexible....to me, going to workshop is a give n take relationship.
most of us probably have quite a lively relationship with workshops handling our rides, it aint some "pay money, u do my car" kinda cold cold relationship bah!?
no need to state the whatever iras rulings, as long as they are honest and upfront, i guess thats most impt

 

[wt_know]

Re: IRAS regulation - Displaying Prices (GST)

workshop can quote 1070 or 1100 but the invoice still need to breakdown and be clear. the invoice also must have gst reg number (compulsory by law) - don't kena smoked.

 

[sszone]

Re: IRAS regulation - Displaying Prices (GST)

workshop can quote 1070 or 1100 but the invoice still need to breakdown and be clear. the invoice also must have gst reg number - don't kena smoked.

so when they work back, it will be like $1028.04 for work + 7% GST $71.96, ie 1100

 

[Red_Bean_Bun]

Re: IRAS regulation - Displaying Prices (GST)

Got a point there ......

 

[wt_know]

Re: IRAS regulation - Displaying Prices (GST)

so when they work back, it will be like $1028.04 for work + 7% GST $71.96, ie 1100

1100/1.07
1028.05 + 71.95 ... nearest 5c rounding ... depend on the POS or acct system la

 

[sszone]

Re: IRAS regulation - Displaying Prices (GST)

1100/1.07
1028.05 + 71.95 ... nearest 5c rounding ... depend on the POS or acct system la

okie....less 1 cent for ah gong...yay!!!! hurray for the workshops....lol

 

[Red_Bean_Bun]

Re: IRAS regulation - Displaying Prices (GST)

Actually, iras collects the nett of the input and out tax components. Since salary is not computed as input tax and output tax includes labour charges .... 7% of labour charges goes to iras. The S part of gst.

the idea is for iras to collect from either the vendor or consumer - if every 1m and higher in revenue workshops all display the gst message then the buck would be likely be passed on to the consumer. Else it will be a 7% loss in a revenue stream with a huge marginal contribution.

smaller workshops - 1m or less in revenue should not be quoting prices same as the bigger ones because its a 7% premium and they do not need to deal with gst. Unless they volunteer to be gst registered but unless they have a need to offset the taxes incurred in imports (input tax).

so when they work back, it will be like $1028.04 for work + 7% GST $71.96, ie 1100

 

[wt_know]

Re: IRAS regulation - Displaying Prices (GST)

smaller workshop will also opt in (no problem) for gst
because the operating cost of the shop including electricity and water also gst charged and moreover parts from stockist sure got gst.
hence, small workshop will also opt in for gst even their revenue < $1M

 

[C3P0]

Re: IRAS regulation - Displaying Prices (GST)

I can't understand a thing here. You all must be accountants.

 

[sszone]

Re: IRAS regulation - Displaying Prices (GST)

smaller workshop will also opt in (no problem) for gst
because the operating cost of the shop including electricity and water also gst charged and moreover parts from stockist sure got gst.
hence, small workshop will also opt in for gst even their revenue < $1M

depends....being gst-registered even though may help workshops to recover their input GST....most are hesitant as it would increase their prices, making them less competitive. thats some of the feedback i have from the smaller biz.