Singapore legislation
Section 38
Section 38
Customers to account for tax on certain supplies
(1)
Where any person makes any prescribed supply of goods or services to another person and that supply is a taxable supply but not a zero-rated supply, the prescribed supply is treated for the purposes of the First Schedule —
as a taxable supply of that other person (as well as a taxable supply of the person who makes it); and
insofar as that other person is supplied in connection with the carrying on by that other person of any business, as a supply made by that other person in the course or furtherance of that business.
(1A)
Nothing in subsection (1)(b) requires any supply to be disregarded for the purposes of the First Schedule on the grounds that it is a supply of capital assets of that other person’s business.
(2)
Where a taxable person makes any prescribed supply of goods or services to a person who —
is himself, herself or itself a taxable person at the time when the prescribed supply is made; and
is supplied in connection with the carrying on by the person of any business,then, it is for the person supplied to account for and pay tax on the prescribed supply as if the person supplied were the supplier; and the supplier must not require payment from the person supplied, of the tax on the prescribed supply or an amount as being attributable to the tax.
(2A)
Nothing in subsection (2) prevents section 78(2) from applying to the person making the prescribed supply of goods or services if, despite that subsection, the person issues an invoice for the prescribed supply of goods or services showing it as taking place with tax chargeable on it.
(3)
So much of this Act and of any written law as has effect for the purposes of, or in connection with, the enforcement of any obligation to account for and pay goods and services tax applies for the purposes of this section in relation to any person who is required under subsection (2) to account for and pay any tax as if that tax were tax on a supply made by the person.
(4)
Despite sections 11, 11A, 11B and 12, for the purposes of this section, a prescribed supply of goods or services is treated as taking place —
in the case of a prescribed supply that is a supply of goods —
if the goods are to be removed, at the time of the removal; or
if the goods are not to be removed, at the time when they are made available to the person to whom they are supplied; or
in the case of a prescribed supply that is a supply of services, at the time when the services are performed.
(4A)
Section 12(1) does not apply for determining the time when any prescribed supply of goods or services is treated as taking place.
(5)
In this section, “prescribed supply”, in relation to goods or services, means such supply of —
goods consisting in or containing any precious or semi‑precious metal or stones;
services relating to, or to anything containing, any precious or semi‑precious metal or stones;
goods or services comprising in or relating to land or any interest in or right over land; or
goods consisting in furniture, furnishings, fittings, appliances or effects that are supplied together with any goods or services mentioned in paragraph (c),as may be specified or described in regulations made by the Minister.