GST - Residential Building Project

There is no doubt that you have to charge GST for construction services done for both residential and commercial properties.

Zero-rated if it is done on properties outside Singapore.

Situation

You are the GST-registered sub-contractor appointed to do the tiling and flooring works for a project eg. total value is $20,000 (excluding GST).

Your GST-registered main contractor will supply you the tiles eg. valued at $8,000 (excluding GST).

How could you do the billing?

Solutions

Option 1 - Invoice the main contractor on the net value ie. ($20,000 less $12,000) $8,000 + $560 GST.

Option 2 - Invoice main contractor for the total value of contract ie $20,000 + $1,400 GST. Main contractor would then invoice you for the tiles supplied ie. $12,000 + $840 GST.

P/S - Adapted from article in ST Feb 6, 2008.