The Inland Revenue Authority of Singapore (IRAS) has issued a new GST Guide, ‘Guide on reimbursement and disbursement of expenses’.

The GST Guide provides clarification on the following:

• The GST principles for differentiating between a reimbursement and disbursement;
• The GST treatment for reimbursement of expenses; and
• The concession on claiming of input tax on disallowed expenses where such expenses are recovered from another business.

It also illustrates the application of these principles on some common business examples.

Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website.