Introduction to Import GST Deferment Scheme (IGDS)

Slides:



Advertisements
Similar presentations
ACCESS MY TAX PORTAL VIA
Advertisements

OLA 1711 T 1008 Your Guide to Gift and Estate Planning for Non-U.S. Citizens.
The payroll cycle Learning objectives
INTERNAL CONTROLS.
RXQ Dual Billing Process Flow Distribution Company Supplier Customer Distribution Company reads meter(s) ( ) Supplier receives and processes.
RXQ Dual Billing Process Flow Distribution Company Supplier Customer Distribution Company reads meter(s) ( ) Supplier receives and processes.
RXQ Dual Billing Process Flow Distribution Company Supplier Customer Distribution Company reads meter(s) ( ) Supplier receives and processes.
How to Facilitate Legitimate Trade in Export Controls ARF Export Licensing Experts Meeting 17 – 18 Nov 05.
Credit Cards 101. Shopping for A Credit Card Comparison shop credit cards Dont take the first offer that comes to you: –Pre-approval Means nothing No.
Accounting and Financial Reporting
Applicable for Persons Registered under Article 10
Publication of Final Regulations for Liquidation and Debt Collection Activities Initially published in Federal Register as proposed rules on 11/3/05 Published.
Sample questions from the Documents units of the Driving Theory syllabus. ESOL for Driving.
Value added tax Agenda Sales Tax - An Overview Introduction to VAT VAT - What it means? Sales Tax and VAT - A Comparative Study Advantages of VAT Registration.
Chapter 6 Computer Assisted Audit Tools and Techniques
MAKERERE UNIVERSITY DIRECTORATE OF INTERNAL AUDIT ACCOUNTABILITY SYSTEMS AND PROCESSES RIDAR HOTEL SEETA 16 TH – 18 TH JUNE 2011 Presented by SAMUEL NATWALUMA.
Buying a Home in Todays Market Wells Fargo Home Mtg. Encino CA. 10/30/2012.
Page 1 of 38 The Request Status function is used to retrieve any documents or reports generated either through the user's request, or generated by the.
Practice Professionalism and Profitability Presented by Lawrence Atkinson Slide 1 Lawrence Atkinson Practice Management Services.
Oregon OSPS Year-End Training Taxable Fringe Benefits and Tax Forms Presented by: Sharon McKeehan Date: October 19, 2010.
Effectively applying ISO9001:2000 clauses 6 and 7.
Human Capital Investment Programme Disability Activation Project (DACT) WELCOME Support Workshop Thursday 7 th February
National Student Loans Service Centre (NSLSC) CanLearn.ca Repayment Seminar U of T February 2013.
Business & Travel Expense Policy: An Overview
Taxpayers Tax base Tax calculation Tax exemption Tax preferences 10. VAT (2)
INLAND REVENUE AUTHORITY OF SINGAPORE
© 2005 KPMG IFRG Limited, a UK registered company, limited by guarantee, and a member firm of KPMG International, a Swiss cooperative. All rights reserved.
Tilde Publishing and Distribution ISBN: Import/Export Mapping International Trade for Australian Business Customs.
Clinical Trial Agreements
Change in Procedures Now going to give further clarification on how this impacts on the information you send to the pension section.
Comparison of Old and New Application (Return)
OMB Circular A133 Audits of States, Local Governments, and Non-Profit Organizations 1 Departmental Research Administrators Training Track.
12 Financial Management 12-1 Financial Planning
Electronic Personnel Master File (ePMF) 1 District Preparation Overview Managing the Electronic Staff Collection Process New York State Education.
Accounting Information Systems 8e
Presented by Joe Gordon. WORKSHOP OUTLINE: Introduction Program Fundamentals State Level 4 Areas Rebate Amount.
Hybrid and Derivative Securities
1 BVI Business Companies Act Workshop Kenneth Baker Deputy Managing Director, Regulation.
Formation of companies with Charitable objects
WELCOME TO THE INDUSTRIAL COMMISSION SELF-INSURANCE SEMINAR.
Trade Finance & Factoring
Patty Bartlett Logan County Treasurer / Public Trustee.
JCQTA Forum Financial Issues THE FUN BIT! David & Lorelei Broadbent.
Prepared by. As stewards of a chapter’s money the chapter officers are responsible for the careful handling and dissemination of funds.
Government Sponsored Student Loans Repayment Seminar.
PRE BUDGET SEMINAR ON SALES TAX Presented by: Mr. Rashid Malik.
Compliance Policy & Procedures An Overview for Staff Prepared by MSM Compliance Services Pty Ltd.
Beneby & Company Chartered Accountants Preparing for The Bahamas Government Proposed Value Added Taxes (VAT)
The Registration Compulsory Under Central Excise Act According to Section 7 of the Central Sales Tax Act, There are two ways in which a dealer can himself.
Bankruptcy What is it’s Effect?. Bankruptcy A legal process that relieves debtors of the responsibility of paying their debts or protects them while they.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Tax Procedures for your Business by Ian Birt, Slides prepared by Peter Miller 1 Goods and Services.
© 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Accounting Information & Reporting Systems by A. Aseervatham and D. Anandarajah. Slides prepared by Kaye.
GST BASICS Presented by: Australian Taxation Office SEGMENTAUDIENCEDATE LEGAL PRACTITIONERS MARCH 2005PROFESSIONAL GST basics Norman Kochannek.
AUDIT, RECOVERY PROCEDURES & PENALTIES UNDER SALES TAX ACT, 1990 AND FEDERAL EXCISE ACT 2005 BY MUNIR QURESHI CHIEF COLLECTOR OF CUSTOMS (SOUTH)
Hawkins Delafield & Wood LLP California Debt and Investment Advisory Commission Arbitrage Compliance for Bonds February 3, 2011.
By CA. Atul Kumar Gupta FCA, FCMA, MIMA. Page 2 Scheme Applicable from when? Benefit available?Who can apply? What is the Procedure?
F6 Taxation (UK). Section A: The UK tax system Section B: Income tax liabilities Section C: Chargeable gains Section D: Corporation tax liabilities Section.
Tradex Scheme. Introduction Tradex is a government initiative to encourage exports, through providing upfront relief from Customs Duty and GST for goods.
Value Added Tax Part D Seller - tax payer Seller - tax payer Buyer - tax bearer Buyer - tax bearer Tax payable = output tax - input tax Tax payable =
TRANSITIONAL PROVISIONS
GST TRANSITIONAL PROVISIONS
Transitional Provisions governed by section 139 to 142 of CGST Act,2017 and Form TRAN 1 and Form TRAN 2 Presented by : PANKAJ KUMAR.
Value Added Tax Calculation of VAT Liability
Transitional Provisions in GST
TRANSITIONAL PROVISIONS
Chapter 6 Advanced BAS Topics.
TaxAssist Accountants, Watford
VAT Module 5: Computation of VAT©
Athlone Education Centre September 2019
Presentation transcript:

Introduction to Import GST Deferment Scheme (IGDS) Goods and Services Tax Introduction to Import GST Deferment Scheme (IGDS) 1

Content Import GST Deferment Scheme (IGDS) Introduction Qualifying Conditions Responsibilities of IGDS Business Differences between IGDS and MES Misuse of Scheme Application Process Where to get more information?

Introduction Current Situation Import GST is collected by Singapore Customs (SC) on all goods imported into Singapore, except where: Relief has been granted under the GST (Imports Relief) Order; or Importer is under an import GST suspension scheme (e.g. Major Exporter Scheme) Business without any GST schemes will need to pay GST upon importation and can only claim back at the time when it files its GST return At point of importation (1 Oct) Pay import GST to SC End of GST period (31 Oct) Prepare GST return Submission of GST return (30 Nov) Make input tax claims for import GST Time lapse between payment of import GST and claiming it back as input tax

Introduction Import GST Deferment Scheme (IGDS) In Budget 2010, IGDS was introduced with the aim to help GST-registered businesses which suffer tighter cash flow as a result of importing goods. Payment of import GST is being deferred from the time of importation to the filing of GST return. This allows importers a credit period of 1 to 2 months, similar to what businesses enjoy for their local purchases. Takes effect from 1 October 2010 Approved businesses will be able to enjoy IGDS status for a period of 3 years till next review At point of importation (1 Oct) Need not pay import GST upfront to SC End of GST period (31 Oct) Prepare GST return Submission of GST return (30 Nov) Pay deferred import GST to IRAS Make input tax claims for import GST Cash flow eased

Introduction GST Reporting NEW! NEW! Import GST Deferred IGDS Section “Total Value of Goods Imported under IGDS” “Deferred Import GST Payable” Importation of Goods Eligible for Input Tax Claims Box 5 “Total Value of Taxable Purchases” Box 7 “Input tax and refunds claimed” Approval date on permit: 12 October 2010 Declared in GST return for period: 1 October to 31 October 2010 NEW! NEW!

Introduction 30 Nov 2010 GST Reporting and Payment Numerical Comparison: Start of GST Accounting Period 1 October 2010 Import goods with import GST amounting to $10,000 12 October 2010 Normal Rules Pay import GST of $10,000 upfront to SC IGDS Need not pay import GST of $10,000 to SC Sell goods with output tax amounting to $15,000 20 October 2010 End of GST Accounting Period 31 October 2010 Pay $5,000 to IRAS Pay $15,000 to IRAS 30 Nov 2010 GST Reporting and Payment Normal Rules Box 6: Account $15,000 output tax Box 7: Claim $10,000 input tax Pay $5,000 net GST IGDS Pay $5,000 net GST before GST deferment New Box: Account $10,000 deferred import GST Pay $15,000 net GST

Introduction Scope of IGDS To import goods in the course or furtherance of your business To import goods belonging to an overseas principal for sale in Singapore or re-export in the capacity of a GST agent (i.e. Section 33(2) or Section 33(A) agent) IGDS will apply to both dutiable and non-dutiable overseas goods under the following circumstances: Direct imports Imports released from Zero-GST/Licensed warehouses into local market Not applicable to customs or excise duties

Qualifying Conditions GST-registered for at least 3 years Letter of guarantee (GST-registered < 3 years) Business is active and solvent Not under bankruptcy, liquidation, receivership or judicial management Have been importing or will be importing goods for business purposes Under monthly GST accounting period Active GIRO account with IRAS for GST payment Deduction will be made on the 15th day of the month after the due date for payment Good compliance records with Singapore Customs No major violation of Singapore Customs’ regulations and requirements

Qualifying Conditions Good compliance records with IRAS Good history of payment for GST and other taxes Prompt submission of GST returns No overdue GST and other taxes No overdue GST returns Good internal controls and proper accounting records Complete Assisted Self-help Kit (ASK) As safeguard against risks: May impose letter of guarantee prior to approval or during the validity period of the scheme; or Reject application

Responsibilities of IGDS Business Satisfy all qualifying conditions at all times IGDS may be revoked at any time if any of the qualifying conditions is not met Once revoked, business is to make immediate arrangements with Singapore Customs for the payment of import GST on subsequent importations If there are material changes in the nature of your business such that you no longer meet the qualifying conditions, you are to notify IRAS immediately. Value of imports must be reported promptly and accurately in GST return Valid permits and relevant supporting documents must be maintained for 5 years IGDS status is not transferable

Responsibilities of IGDS Business Operational Procedures Clear goods at importation with the relevant permits TradeNet user and registered with Singapore Customs Appoint authorised declaring agent Online Declaration of Agents via myTax Portal Maximum of 20 authorised declaring agents

Differences between IGDS and MES Target Group Importers Has been importing or will be importing goods with good compliance records with SC and IRAS Major exporters Zero-rated supplies > 50% of total supplies or Value of zero-rated supplies > S$10 million for past 12 months Payment of Import GST Deferred until the submission of GST return, applies to dutiable goods Suspended, does not apply to dutiable goods Major Requirements 1. Monthly GST reporting 2. GIRO payment 3. Complete ASK Submit Positive Assurance Report

Misuse of Scheme Late payment penalties Late submission of GST returns Late payment in accounting for deferred import GST Import goods that are not for the purpose of your business or under any other permissible situations constitute an offence Re-pay the amount of GST that has been deferred in an unauthorised manner IGDS status revoked Possible imposition of penalties and criminal prosecution This scheme is akin to the government granting credit terms on paying of import GST. As the payment of the import GST is now tied to the filing of GST return and it becomes even more important for businesses to file on time. Therefore, only businesses with good compliance records would be allowed into the scheme. Any late filing will constitute late payment of import GST that ought to be paid at the time of importation and would subject the business to late payment penalties.

Application Process To apply for IGDS status, you are required to submit the following documents: A duly completed and signed application form GST F22 Review Section 1 (GST Practices) and Section 2 (Pre-filing Checklist) of ASK A duly completed "ASK: Declaration Form on Completing Annual Review & Voluntary Disclosure of Errors" Review Section 3 of ASK (i.e. Carry out self-review of GST returns filed in past financial year) Application form GST F22 can be downloaded from www.iras.gov.sg > Quick Links > Tax forms > GST

Application Process Successful applications Notified by the Comptroller of GST in writing IGDS status is valid for 3 years Any other prior approved GST schemes relating solely to imports will be terminated

Application Process No Yes Applications made before 1 April 2011 Submitted Section 3 of ASK (i.e. Annual Review)? Interim 1-year IGDS status will be granted Submit ASK Declaration Form within 1 year of successful interim IGDS? IGDS status will be terminated IGDS status extended for another 2 years IGDS status will be valid for a period of 3 years No Yes

Where to get more information? TradeNet® Declarations for IGDS: Singapore Customs’ circular on TradeNet® declaration procedures for IGDS. The circular will cover the following areas: Application for IGDS TradeNet® Permits (for import GST to be deferred with Singapore Customs) Rectification of erroneous declarations for IGDS permits (under-declaration or over-declaration of the import value in IGDS permit) General information on IGDS: IRAS e-Tax Guide on IGDS