Please take note of the following updates by CEA with regards to the Frequently Asked Questions (FAQs) on Goods and Services Tax (GST) for commission payments: Q1: Can estate agents charge Goods And Services Tax (GST) for the commission payments? A1: If the estate agent is GST registered, GST is payable on the commissions that it charges. If the estate agent is not GST registered, it is not allowed to charge GST. Q2: What happens to the GST collected by estate agents? A2: The estate agents are required to pay the GST collected to Inland Revenue Authority of Singapore (IRAS). Q3: When should the GST amount be made known to consumers? A3: Salespersons should let consumers know up front whether the commission they charge will attract GST and the total amount payable. It is good to have such matters clarified before the salesperson is engaged by the consumer. Q4: What can salespersons do if the consumers ask them to absorb the GST? A4: Salespersons can explain to consumers that GST is a consumption tax levied on goods and services and the estate agent is required to pay the GST collected to IRAS. If the salesperson has delivered good service, he should be entitled to his full commission payment without having to absorb the GST and if he is asked to absorb GST, he will be getting a lesser amount than what he was entitled to. Q5: Can CEA mandate that consumers pay the GST on the commissions? A5: Similar to other businesses in Singapore, an estate agent may decide to charge GST or to absorb it. CEA cannot mandate it. ---CEA are there to collect money from us and cannot do anything?? Got answer like no answer, we decide on it and if we decide wrongly, we will be charged
Posted on: Fri, 28 Jun 2013 02:47:29 +0000