© 2012 GSTax Consultancy Pte Ltd 

GSTax Consultancy is registered as a tax consulting firm with ACRA

GST Infoline: (65) 6652 5509 | Ask@GSTaxConsultancy.com

(UEN: 201307972K)

  • Facebook - Black Circle

Update on definition of OMV

27-Feb-2017

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:

  1. The cost of the asset is not more than $200; or

  2. 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If the asset is obsolete and has no market value, you need not account for output tax when you dispose of, transfer or give away the asset.

 

Source: IRAS  

Share on Facebook
Share on Twitter
Please reload

Featured Posts

Common errors on input tax claims explained using an info video from IRAS

Around 3,000 GST-registered businesses are selected by the IRAS for audit eve...

IRAS releases new video on input tax

10-Jul-2018

1/8
Please reload

Recent Posts
Please reload

Archive