Repairs included in the original sale
Where warranty coverage is already included in the goods’ price, carrying out covered repairs without charging the customer does not require a further deemed output charge for repair items. Eligible repair input tax supports the original taxable sale. The distributor route follows this principle when it owns and resells the goods with the warranty. Keep the original warranty terms and evidence that the repair occurred within coverage.
Distinguish compensation from service fees
A distributor recovering actual warranty costs without markup can fall within the stated expense-settlement treatment. A markup instead creates a repair service taxable on the full payment, not just the margin. An independent authorised repairer that never took title makes a separate repair supply to the manufacturer; Singapore-goods repairs remain taxable even when the manufacturer is overseas. Retain the supply chain, repair invoices and cost-recovery calculations.
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.
Read the official PDF ↗