Charge the contractual supply correctly
Singapore construction, alteration, repair and demolition services are taxable on residential and commercial projects alike. Progress and retention amounts follow the earlier of invoice or payment. A provisional letter of claim awaiting certification is distinct from the final invoice; retain the architect’s work certificate and issue adjustments where the certified amount changes. Overseas-land services and goods require separate international or location rules.
Avoid netting separate supplies
Where a contractor undertakes both materials and work, a main contractor’s back-charge for materials does not reduce the gross contractual supply for GST. Each party documents its own supply; a labour-only contract has different facts. Tender-document payments or deposits used as future payment may attract tax, while compensatory breach payments do not constitute a service merely because money is received. Analyse reimbursements and agent disbursements separately and keep contract, invoice and payment records.
Official source
A concise, independent Apex Gateway guide based on the official English source, not a reproduction of the complete document. Consult the original for full conditions, exceptions and subsequent updates.
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