Gross Margin Scheme - Revision history

Khkoh: /* Purchasing Goods */

2026-07-27T10:43:28Z

Purchasing Goods

Khkoh: /* Purchasing Goods */

2026-07-27T10:37:47Z

Purchasing Goods

← Older revision		Revision as of 18:37, 27 July 2026
Line 87:		Line 87:
	----		----

	= Purchasing Goods =		== Purchasing Goods ==
	When receiving or purchasing goods under the Gross Margin Scheme, users '''must enter the Serial Number or Batch Number''' for each qualifying item.		When receiving or purchasing goods under the Gross Margin Scheme, users '''must enter the Serial Number or Batch Number''' for each qualifying item.

Khkoh at 10:37, 27 July 2026

2026-07-27T10:37:19Z

← Older revision		Revision as of 18:37, 27 July 2026
Line 12:		Line 12:
	For detailed eligibility requirements and operating rules, please refer to the official IRAS webpage:		For detailed eligibility requirements and operating rules, please refer to the official IRAS webpage:

	'''Gross Margin Scheme (GMS)'''		'''Gross Margin Scheme (GMS)''' [https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/general-gst-schemes/gross-margin-scheme]

	~~<nowiki>~~https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/general-gst-schemes/gross-margin-scheme~~</nowiki>~~
	----		----

Line 49:		Line 47:
	'''Sales Tax-GMS-NA'''		'''Sales Tax-GMS-NA'''

	'''Include Shipping'''		'''Include Shipping:''' '''No''' '''('''Shipping charges are not part of the Gross Margin Scheme calculation.)

	'''No'''

	Shipping charges are not part of the Gross Margin Scheme calculation.
	----		----

Line 61:		Line 55:
	'''Suggested name'''		'''Suggested name'''

	'''Purch Tax-GMS-NA'''		'''Purch Tax-GMS-NA:''' This setup is optional and depends on your business requirements.

	This setup is optional and depends on your business requirements.
	----		----

Line 73:		Line 65:
	'''GMS-Gross Margin Scheme - 9%'''		'''GMS-Gross Margin Scheme - 9%'''

	Configure this item tax type so that it is '''exempt from every GST tax type except the GMS tax type (NA-GSM)''' created earlier.		Configure this item tax type so that it is '''exempt from every GST tax type except the GMS tax type (NA-GSM)''' created earlier. This ensures that GMS items cannot accidentally be taxed using the normal GST calculation.

	This ensures that GMS items cannot accidentally be taxed using the normal GST calculation.
	----		----

Line 100:		Line 90:
	When receiving or purchasing goods under the Gross Margin Scheme, users '''must enter the Serial Number or Batch Number''' for each qualifying item.		When receiving or purchasing goods under the Gross Margin Scheme, users '''must enter the Serial Number or Batch Number''' for each qualifying item.

	The system uses this information to identify the original purchase cost when the item is subsequently sold.<blockquote>'''Important'''		The system uses this information to identify the original purchase cost when the item is subsequently sold.<blockquote>'''Important:''' Each Serial Number or Batch Number should uniquely identify the purchased item. Accurate entry is essential because the GST calculation is based on the purchase price of that specific item.</blockquote>

	Each Serial Number or Batch Number should uniquely identify the purchased item. Accurate entry is essential because the GST calculation is based on the purchase price of that specific item.</blockquote>
	----		----

	= Sales Processing =		== Sales Processing ==
	After the initial setup is completed, users simply process purchase and sales transactions as normal.		After the initial setup is completed, users simply process purchase and sales transactions as normal.

Line 121:		Line 109:
	----		----

	= GST Reporting =		== GST Reporting ==
	All Gross Margin Scheme transactions are automatically included in the GST reporting process.		All Gross Margin Scheme transactions are automatically included in the GST reporting process.

Line 129:		Line 117:
	----		----

	= Important Notes =		== Important Notes ==

	* Gross Margin Scheme items must not be mixed with normal GST-taxable items within the same invoice.		* Gross Margin Scheme items must not be mixed with normal GST-taxable items within the same invoice.
	* Every GMS item must have a valid Serial Number or Batch Number recorded during purchase.		* Every GMS item must have a valid Serial Number or Batch Number recorded during purchase.

Khkoh: /* IRAS Gross Margin Scheme (GMS) */

2026-07-27T10:31:51Z

IRAS Gross Margin Scheme (GMS)

← Older revision		Revision as of 18:31, 27 July 2026
Line 20:		Line 20:
	Before processing transactions under the Gross Margin Scheme, the following setup is required.		Before processing transactions under the Gross Margin Scheme, the following setup is required.

	== 1. Create a GST Tax Type ==		== Create a GST Tax Type ==
	Create a GST tax type for GMS.		Create a GST tax type for GMS.

Line 42:		Line 42:
	----		----

	== 2. Create a Sales Tax Group ==		== Create a Sales Tax Group ==
	Create a sales tax group.		Create a sales tax group.

Line 56:		Line 56:
	----		----

	== 3. Create a Purchase Tax Group (Optional) ==		== Create a Purchase Tax Group (Optional) ==
	If your business also purchases goods from suppliers using the Gross Margin Scheme, you may create a purchase tax group.		If your business also purchases goods from suppliers using the Gross Margin Scheme, you may create a purchase tax group.

Line 66:		Line 66:
	----		----

	== 4. Create an Item Tax Type ==		== Create an Item Tax Type ==
	Under '''Item Tax Exemption''', create a new item tax type.		Under '''Item Tax Exemption''', create a new item tax type.

Line 78:		Line 78:
	----		----

	== 5. Configure Inventory Items ==		== Configure Inventory Items ==
	For every inventory item that will be sold under the Gross Margin Scheme:		For every inventory item that will be sold under the Gross Margin Scheme:

Line 87:		Line 87:
	----		----

	== 6. Configure Customers ==		== Configure Customers ==
	Customers purchasing goods under the Gross Margin Scheme should use the GMS Sales Tax Group.		Customers purchasing goods under the Gross Margin Scheme should use the GMS Sales Tax Group.

Khkoh at 10:30, 27 July 2026

2026-07-27T10:30:49Z

← Older revision		Revision as of 18:30, 27 July 2026
Line 2:		Line 2:

	Reference: https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com		Reference: https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com

			= IRAS Gross Margin Scheme (GMS) =

			== Overview ==
			The '''Gross Margin Scheme (GMS)''' is a special GST scheme administered by the Inland Revenue Authority of Singapore (IRAS). It allows eligible businesses dealing in second-hand goods, motor vehicles, and certain qualifying products to account for GST only on the '''gross margin''' (selling price less purchase price), instead of on the full selling price.

			Under this scheme, GST is calculated only when the selling price exceeds the purchase price. If the selling price is equal to or lower than the purchase price, no GST is payable on that transaction.

			For detailed eligibility requirements and operating rules, please refer to the official IRAS webpage:

			'''Gross Margin Scheme (GMS)'''

			<nowiki>https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/general-gst-schemes/gross-margin-scheme</nowiki>
			----

			= Highnix Setup =
			Before processing transactions under the Gross Margin Scheme, the following setup is required.

			== 1. Create a GST Tax Type ==
			Create a GST tax type for GMS.

			'''Suggested setup'''
			{\| class="wikitable"
			!Field
			!Value
			\|-
			\|Tax Type
			\|'''NA-GSM'''
			\|-
			\|GST Rate
			\|'''9.0%'''
			\|-
			\|Sales GL Account
			\|'''2253 Output GST-NA'''
			\|}
			'''Note'''

			The prefix '''"NA"''' is recommended because GST is '''not displayed on customer invoices''' under the Gross Margin Scheme. The GST is computed internally and posted into the GST Output account (GL Account 2253).
			----

			== 2. Create a Sales Tax Group ==
			Create a sales tax group.

			'''Suggested name'''

			'''Sales Tax-GMS-NA'''

			'''Include Shipping'''

			'''No'''

			Shipping charges are not part of the Gross Margin Scheme calculation.
			----

			== 3. Create a Purchase Tax Group (Optional) ==
			If your business also purchases goods from suppliers using the Gross Margin Scheme, you may create a purchase tax group.

			'''Suggested name'''

			'''Purch Tax-GMS-NA'''

			This setup is optional and depends on your business requirements.
			----

			== 4. Create an Item Tax Type ==
			Under '''Item Tax Exemption''', create a new item tax type.

			Example:

			'''GMS-Gross Margin Scheme - 9%'''

			Configure this item tax type so that it is '''exempt from every GST tax type except the GMS tax type (NA-GSM)''' created earlier.

			This ensures that GMS items cannot accidentally be taxed using the normal GST calculation.
			----

			== 5. Configure Inventory Items ==
			For every inventory item that will be sold under the Gross Margin Scheme:

			* Open the Inventory Item setup.
			* Set the '''Item Tax Type''' to:

			'''GMS-Gross Margin Scheme - 9%'''
			----

			== 6. Configure Customers ==
			Customers purchasing goods under the Gross Margin Scheme should use the GMS Sales Tax Group.

			Example:

			'''Sales Tax Group'''

			'''Sales Tax-GMS-NA'''
			----

			= Purchasing Goods =
			When receiving or purchasing goods under the Gross Margin Scheme, users '''must enter the Serial Number or Batch Number''' for each qualifying item.

			The system uses this information to identify the original purchase cost when the item is subsequently sold.<blockquote>'''Important'''

			Each Serial Number or Batch Number should uniquely identify the purchased item. Accurate entry is essential because the GST calculation is based on the purchase price of that specific item.</blockquote>
			----

			= Sales Processing =
			After the initial setup is completed, users simply process purchase and sales transactions as normal.

			No additional GST calculation is required during invoicing.

			The system automatically:

			* Retrieves the original purchase cost using the Serial Number or Batch Number.
			* Calculates the gross margin.
			* Computes the GST payable on the gross margin only.
			* Records the GST into the configured GST Output GL account.
			* Includes the transaction in the GST reporting.

			Customer invoices continue to be printed without displaying GST separately, in accordance with the Gross Margin Scheme requirements.
			----

			= GST Reporting =
			All Gross Margin Scheme transactions are automatically included in the GST reporting process.

			When the GST Tax Report is generated, GMS transactions will appear under the configured GMS tax type together with the GST amount calculated by the system.

			No manual adjustment is required.
			----

			= Important Notes =

			* Gross Margin Scheme items must not be mixed with normal GST-taxable items within the same invoice.
			* Every GMS item must have a valid Serial Number or Batch Number recorded during purchase.
			* The purchase price used for GST computation is taken from the original purchase transaction of the corresponding Serial Number or Batch Number.
			* If the selling price is less than or equal to the purchase price, no GST is payable for that item.
			* Shipping charges are excluded from the Gross Margin Scheme calculation.

Khkoh at 03:42, 23 July 2026

2026-07-23T03:42:05Z

← Older revision		Revision as of 11:42, 23 July 2026
Line 1:		Line 1:
	__FORCETOC__		__FORCETOC__

			Reference: https://www.iras.gov.sg/taxes/goods-services-tax-%28gst%29/general-gst-schemes/gross-margin-scheme?utm_source=chatgpt.com

Khkoh: Created page with "FORCETOC"

2026-07-23T03:41:50Z

Created page with "__FORCETOC__"

New page

__FORCETOC__

Gross Margin Scheme - Revision history

Khkoh: /* Purchasing Goods */

Khkoh: /* Purchasing Goods */

Khkoh at 10:37, 27 July 2026

Khkoh: /* IRAS Gross Margin Scheme (GMS) */

Khkoh at 10:30, 27 July 2026

Khkoh at 03:42, 23 July 2026

Khkoh: Created page with "__FORCETOC__"

Khkoh: Created page with "FORCETOC"