Trade-ins

Key requirements

The seller supplies the new item at its full selling price, while the customer separately supplies the old item at its trade-in value. In the source example, new equipment priced at S$400, an old item credited at S$300 and S$100 additional payment still represent two supplies of S$400 and S$300. The seller issues the invoice and accounts for GST on the full new-item value, not just S$100. A GST-registered customer likewise invoices and accounts for the old item at its trade-in value. Where the customer is not registered, it does not charge GST merely because the seller is registered. Keep separate valuations and documents so that the net settlement does not conceal either supply or create an unsupported input claim.