Is Cash Register Tape A Valid Contract
Tax invoices, customer accounting taxation invoices, receipts and credit notes are common documents issued when billing your customers. These documents serve equally important records of business transactions betwixt you and your customers.
On this page:
Taxation invoice/customer accounting taxation invoice
A tax invoice/ customer accounting taxation invoice is the main document for supporting an input tax claim.
You must keep these tax invoices issued to your customers, and those given to yous by your suppliers, for at least 5 years. You lot do not need to submit them with your GST returns.
When to issue a revenue enhancement invoice
A revenue enhancement invoice must be issued when your customer is GST registered. Your customer needs to keep this tax invoice as a supporting document to claim input tax on its standard-rated purchases. In full general, a tax invoice must be issued within xxx days from the fourth dimension of supply.
A tax invoice does not need to be issued for null-rated supplies , exempt supplies and deemed supplies or to a not-GST registered customer.
Information required in a taxation invoice
A taxation invoice must contain the post-obit information:
The tax invoice must also provide details on exempt, zero-rated, or other supplies, if applicable. The gross amount payable for each type of supply must be separately stated.
Invoicing in a strange currency
When y'all invoice your client in a foreign currency, you must catechumen the post-obit items on the tax invoice into Singapore dollars:
- Total amount payable excluding GST
- Total corporeality payable including GST
- Total GST payable
Your GST-registered customer (subject field to the fulfilment of the input tax claiming weather) can just claim input taxation based on the amounts stated in the tax invoice issued by you, the supplier. Please notation that you must apply approved exchange rates for GST purpose (PDF, 185KB) for the conversion.
Summate GST on tax invoices
There are 2 ways to compute the total GST corporeality on your taxation invoice when your customer purchases several items of standard-rated supplies:
- Apply seven% to the value of each item (excluding GST), and and then sum the GST computed for each item
- Apply seven% to the sum of the value of each particular (excluding GST)
The full GST computed may differ due to rounding because of the method you accept chosen. Both methods are acceptable and you must apply the chosen method consistently.
Case one: Apply vii% to the value of each item (excluding GST), and and then sum the GST computed for each item
You lot are a stationery retailer. Your customer purchased 3 pens. The tax invoice issued to your client may contain the post-obit:
| Item | Quantity | Amount Payable (excluding GST) | GST Amount for Each Item |
|---|---|---|---|
| Green pen | i | $one.33 | $0.09 ($one.33 10 7%) |
| Red pen | 1 | $ane.33 | $0.09 ($1.33 X 7%) |
| Blue pen | 1 | $1.33 | $0.09 ($1.33 Ten 7%) |
| Sub-Total | $3.99 | = $0.27 ($0.09 + $0.09 + $0.09) | |
| Total Payable | = $4.26 ($3.99 + $0.27) |
Example ii: Use seven% to the sum of the value of each item (excluding GST)
You are a stationery retailer. Your customer purchased 3 pens. The tax invoice issued to your customer may contain the post-obit:
| Item | Quantity | Amount Payable (including GST) |
|---|---|---|
| Green pen | 1 | $1.33 |
| Red pen | 1 | $1.33 |
| Blueish pen | 1 | $1.33 |
| Sub-Full | $3.99 ($1.33 + $one.33 + $1.33) | |
| GST @ 7% | = $0.28 ($3.99 X seven%) | |
| Total Payable | = $4.27 ($three.99 + $0.28) |
Rounding off total GST
You can round the full GST to be paid on all goods and services to the nearest cent (i.e. two decimal places).
You may also choose to round your total beak (i.e. total corporeality payable including GST) to the nearest 5 cents to facilitate greenbacks payment by your customers.
Whether a bill should exist rounded upwards or rounded down to the nearest 5 cents is your business conclusion. However, the decision for the amount to be rounded up or down must be applied consistently.
When to issue a client bookkeeping revenue enhancement invoice
You must outcome a customer accounting tax invoice, instead of a regular tax invoice, when you make a relevant supply that is field of study to customer accounting to your GST-registered client.
Your GST-registered customer needs to proceed this customer accounting taxation invoice as a supporting document to account for the output taxation on this supply on your behalf, too equally to claim the input tax on this buy.
For data on what you must include on a customer accounting tax invoice, y'all may refer to our e-Revenue enhancement Guide on GST: Customer Accounting for Prescribed Goods (PDF, 434KB).
Simplified tax invoice for amounts under $i,000
You may issue a simplified taxation invoice instead of a regular tax invoice if the total corporeality payable for your supply (including GST) does not exceed $1,000.
A simplified tax invoice only requires the post-obit information:
- Supplier's name, address and GST registration number
- Date of issue of invoice
- An identifying number (e. g. invoice number)
- Description of the goods or services supplied
- Total amount payable including GST
- A statement like to "price payable includes GST"
A sales voucher or debit notation can double up every bit a simplified tax invoice if it contains all the required information above.
Invoice for an exempt supply of investment precious metal (IPM)
An invoice must be issued for an exempt supply of investment precious metal (IPM). The GST: Guide on Exemption of Investment Precious Metals (IPM) (PDF, 397KB) lists the information you lot must include on an invoice issued for an exempt supply of IPM.
Receipt
Y'all may upshot a receipt instead of a tax invoice to your non-GST registered customer. Receipts can be used as proof of your sales made to customers. You must retain a duplicate of the receipt issued.
A receipt must be serially printed and take all the following details:
- Engagement of issue of the receipt
- Your business name and GST registration number
- The total amount payable (including the total amount of GST chargeable)
- The words "Price payable includes GST"
You do not need IRAS' approving if you choose not to upshot receipts. Nevertheless, you must keep proper records on all business transactions for tax purposes You lot can utilise either a greenbacks register or bookkeeping software to aid you maintain your business records.
Please note that:
- If requested by customers, you lot must still effect receipts.
- You must still event tax invoices to GST registered customers, as explained in the section on when to consequence a tax invoice.
Y'all should ask for a receipt when you make a purchase for business purposes whether you lot pay by greenbacks or cheque. The receipt serves every bit proof of payment made to and received by your supplier.
Credit annotation
When to issue a credit notation
A credit note is issued to correct a fault or to requite a credit to your customer nether the following situations:
- To correct a mistake (e.g. goods invoiced as standard-rated, which should accept been exempt or zero-rated);
- Goods or services were not supplied;
- Charges are partly or fully waived before/afterwards delivery of the goods;
- Goods or services are accepted, simply terms of the contract are not fully met (e.g. sub-standard goods are accustomed by the customer at a reduced price);
- Goods are returned or services are not accepted; or
- Discount given for a past transaction.
Information required in a credit notation
A credit annotation must include the post-obit details:
- An identifying number due east.g. a serial number
- Appointment of issue
- Your name, accost and GST registration number
- Your client'south proper name and accost
- Reason for the credit, due east.g. "returned appurtenances"
- Detailed description to identify the appurtenances and services that credit is immune for
- Quantity and amount credited for each description
- Full amount credited, excluding tax
- Rate and amount of revenue enhancement credited
- Total corporeality credited, including tax
The number and date of the original tax invoice should also exist shown on the credit note. If you are unable to practise so (due east.g. because returned goods cannot be identified with a particular tax invoice), you must maintain other documentary evidence that you lot have accounted for GST on the original supply.
Declaring credit note in GST returns
Adjustments should be fabricated to the value of standard-rated supplies (Box one) and output taxation due (Box 6) in the GST return for the accounting period in which the credit notation is issued.
You should also check that GST was correctly accounted for on the original transactions in your before returns before making the adjustments. If GST was non accounted for correctly, you lot need to correct the errors made for the earlier returns.
For credit notes issued relating to customer bookkeeping supplies, you may refer to GST: Customer Accounting for Prescribed Appurtenances to learn how the adjustments should be fabricated.
Example: declaring credit note in GST returns
Choosing not to adapt the GST amount when issuing a credit annotation
In your credit note, you can choose not to adjust the GST amount charged on the original taxation invoice if all the following atmospheric condition are satisfied:
- Both supplier and customer concur in writing not to adjust the original GST amount. This written agreement does not demand to be a formal contract. It could be the correspondence between supplier and client via letters or emails. Both parties must retain the written agreement as part of their GST records. The written agreement does not demand to be submitted to IRAS, unless requested.
- Client is a fully taxable person (i.e. does non make whatsoever exempt supplies).
- The credit annotation, which is issued without whatever adjustment to the original GST amount, should incorporate the statement "This is not a credit note for GST purposes". If such credit notes are issued by the supplier, both the supplier and client do not demand to adjust the value of their taxable supplies/ purchases or the related output/ input tax.
Debit note
You should only issue a debit annotation to request for payment for transactions where no GST is charged (e.thou. internal billings within the same company), or to suppliers from whom credit is due.
For all other standard-rated supplies to GST-registered customers, yous must issue a taxation invoice or simplified tax invoice (where the full amount payable including GST does not exceed $1,000). This enables your customer to support his input tax claims.
Issuing debit note to record credit received from suppliers
A tape of all credits received from your suppliers must be kept. If you normally issue debit notes to suppliers from whom credit is due, the debit notes must show the same details required for credit notes.
If credit notes are later on received from the suppliers, they should be compared with the debit notes issued to ensure that the figures match.
Self-billing
Updated! Self-billing is a billing organisation between a GST-registered supplier and a GST-registered customer, where the customer, instead of the supplier, prepares the supplier'south revenue enhancement invoice/ customer accounting tax invoice and sends a copy to the supplier. Please refer to the samples of the cocky-billing taxation invoice (PDF, 93KB)
Reasons for cocky-billing
In some industries (e.g. publication industry), the business organisation is such that customers, instead of the supplier, will determine and verify the last value of the appurtenances delivered or the services rendered to them. Hence, it is more than convenient for the customer, rather than the supplier, to outcome the tax invoice/customer accounting revenue enhancement invoice.
Customers that prescribe purchase documentation for their suppliers may also prefer cocky-billing to facilitate their internal controls and bookkeeping system.
Self-billing considerations
Before you lot apply for cocky-billing, you should consider the following points:
- You volition have added responsibilities to ensure that the weather condition of self-billings are satisfied
- You lot will have to ensure that the GST corporeality is correctly calculated for the appurtenances and services supplied to you lot
- Y'all will accept to ensure that any errors made on buyer-created revenue enhancement invoices/ client accounting tax invoices are corrected and the supplier is duly informed
To adopt self-billing, the customer must consummate and submit the Self-Review of eligibility and declaration on apply of cocky-billing form, after verifying that all conditions in the course are satisfied.
The customer can adopt self-billing from the date of submission of the form, based on its declaration that all conditions in the Course has been satisfied. No further approving is required from IRAS.
If you have previously received IRAS' blessing for self-billing, you may continue to self-neb every bit long every bit you notwithstanding satisfy the weather in the Form. You practise non demand to submit the Course over again.
You exercise not need to submit your updated list of suppliers covered past the self-billing system but should retain the updated list as your business records.
FAQs
Tax Invoice
Are there other documents I tin can outcome for my sales likewise a tax invoice?
Practice I need to result a tax invoice for my naught-rated supplies?
Credit Note
If I issue a credit note for foreign denominated tax invoices, should I use the prevailing substitution charge per unit or the historical exchange rate?
If I issue a credit notation to cancel a taxation invoice issued last year, practise I need to request for a GST F7? How practise I declare the credit note?
Is Cash Register Tape A Valid Contract,
Source: https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/basics-of-gst/invoicing-price-display-and-record-keeping/invoicing-customers
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