Update on definition of OMV
Open Market Value ("OMV") GST-registered businesses are required to account for output tax based on the Open Market Value ("OMV") of an asset when they dispose, transfer or give the asset for free. IRAS now provides more clarity on what is OMV.
Disposing of Your Assets for Free
When your asset still has market value and you dispose of, transfer or give away the asset for free, you are required to account for output tax based on the OMV of the asset.
OMV of the asset refers to the price, excluding GST, that the asset could have fetched if it has been sold to an unrelated party at the time of disposal or transfer.
Effective from 1 Oct 2012, this requirement to account for output tax based on the OMV of the asset applies unless:
The cost of the asset is not more than $200; or
No credit for input tax was allowed to you on the purchase or import of those assets.
If the asset is obsolete and has no market value, you need not account for output tax when you dispose of, transfer or give away the asset.