GST - Deposit / Advance Payment

invest2k

Generally most deposit payments represent consideration, as the amount paid over is intended by the parties to the contract to be offset against the purchase price once the supply has been made. Such payments fall within the scope of GST and tax must be accounted for on receipt of the deposit.

Section 11(4) of GST Act 2014 - "The supply shall, to the extent covered by the invoice or payment, be treated as taking place at the time the invoice is issued or the payment is received, as the case may be, or whichever is the earlier.

如果deposit是advance payment, 是要征收6% GST (大部分Customs 的 guideline 算 deposit / advance payment GST inclusive (x 6/106).

可是以下GST guideline说要issue tax invoice (Part IV, regulation 22 of GST Regulations (Contents of tax invoice - The total amount payable excluding tax) GST exclusive : Supply + 6% GST).


问题 ：Are deposit (part of consideration) and advance payment are GST inclusive or GST exclusive?

GUIDE ON TAX INVOICE AND RECORDS KEEPING AS AT 20 JULY 2014
FREQUENTLY ASKED QUESTIONS

Q7. Do i need to issue tax invoice for deposit or part payment if it is part of the consideration?
A7. Yes, you have to issue a tax invoice.

vernonshe

It depend on your arrangement with customer..

Says， deposit is RM100.. if you want it to be exclusive, just need your customer to pay the extra 6%, which is RM6..

else， it become inclusive。。