We Made a Sales To An Overseas Customer. How To Account For GST, If He Buys For Hand-Carry Back To His Country?

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1717-1212-2019201920192019

INDIRECT EXPORT

If this sales can provide proof that the item was exported (Direct Export), you can enter as GST Zero-Rated for Export. However in this case, the customer hand-carries the goods and you do not have control over the export process. This is treated as Indirect Export, and you can do the following:-

(1) BILL AS GST ZERO-RATED SUPPLIES

This will mandate you furnish proof of export, usually possible if the departing goods were duly inspected and endorsed at the departing seaport/airport.

(2) BILL AS STANDARD-RATED SUPPLIES (7%)

This is straight forward, and the customer can claim back the GST paid at the respective seaport/airport, upon inspection at the GST Refund section.

Please note that failure to handle this as prescribed may cause you to be exposed to tax offences.

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For more authoritative explanation of the Export/GST process, please refer to this GST EXPORT DOCUMENT, published by IRAS. In above example, please refer to page 31 and 32 for explanation.

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