I received a discount for my online purchase. Do I have to pay GST for the original value of the purchase before discount?
In general, discounts given by suppliers under normal trade practices, such as cash, quantity and trade discounts, are acceptable deductions and can be excluded for GST computation purposes unless:
- The buyer and seller are related and the transaction price is affected due to the relationship;
- The buyer undertakes certain activities for or on behalf of the seller as part of the payment under the contract of sale;
- The buyer provides other goods/services to a third party for or on behalf of the seller as a condition of sale for the imported goods;
- The price of the imported goods has received credits made in respect of earlier transactions.
Additionally, the amount and type of discount received, i.e. cash discount, quantity discount or trade discount should be clearly stated on the invoice.
Related questions
What are the discounts in the commercial invoice that are not acceptable by Customs? Which are the ones to deduct from the invoice value for GST?
I have been offered a quantity discount of 10% by my supplier. Should the discount be reflected in the Customs value?
An importer acquires a machine from an overseas supplier. The list price of the machine is S$200 but the supplier grants a 10% trade discount to the buyer because he operates at the retail level of trade, resulting in a total price paid or payable of S$180. What is the Customs value?
What is a trade discount? A supplier listed the discount in the invoice as the consignee is the distributor in Singapore. Should it be included in the CIF value?
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