Scope and vehicle classification
The tenth edition dated 30 January 2026 covers GST-registered traders importing and selling new/second-hand vehicles and deregistered vehicle bodies. A second-hand vehicle has been used and registered in Singapore; a used overseas-registered vehicle imported for Singapore registration is excluded from that definition. Delivery mileage or road registration alone does not make a new vehicle second-hand: it remains unused until driven after a retail sale or appropriated by the dealer for business. A non-trader occasionally selling a used business vehicle uses the Discounted Sale Price Scheme, not trader GMS by default.
Imports, relief and displayed prices
Import GST is on CIF plus Customs duty. Example 1: CIF S$25,928 plus duty S$5,185.60 gives 9% GST S$2,800.22. For qualifying relief, such as reimport after overseas repair, apply to Customs before importing or sending the vehicle overseas. Public advertisements, displayed and quoted prices must include GST so buyers know the final payment, even when the package includes ARF and COE.
New vehicles: remove regulatory charges before GST
ARF, COE, registration fee and road tax, including applicable AFC for electric cars, are regulatory rather than goods/service charges. Deduct amounts paid to LTA before applying GST to the rest. Other regulatory incentives, rebates and surcharges, such as VES, electric-vehicle early-adoption incentives and plate-retention fees, require net regulatory treatment. The transfer fee is a business cost, not a buyer regulatory charge deductible under the new-vehicle rule. All other supply-related charges remain taxable.
Examples 2–3: exclusive and inclusive sale prices
For an exclusive S$155,000 package less ARF S$20,000, COE S$95,000, RF S$350 and road tax S$400, taxable value is S$39,250 and GST S$3,532.50. For a GST-inclusive S$158,533 package with the same deductions, taxable gross is S$42,783; GST is 9/109 × that amount = S$3,532.54 and Box 1 value S$39,250.46. Use 9% on tax-exclusive value and the fraction on the taxable inclusive remainder, not on the full regulatory package.
Examples 4–5: off-peak rebate and discounted COE
For ROPC, deduct only net ARF/COE paid to LTA after the rebate. Example 4 has S$140,215 inclusive price, S$115,000 ARF/COE less S$17,000 rebate = S$98,000, RF S$350 and road tax S$70: taxable gross S$41,795, GST S$3,450.96. A customer discount on COE does not replace the LTA quota premium. Example 5 deducts S$95,000 quota premium despite a S$97,000 trader acquisition price and S$86,000 discounted invoice label, giving GST S$3,532.54.
Examples 6–8: PARF/COE rebates and early turnover
A S$63,000 customer PARF/COE rebate reduces the amount the customer pays, not the taxable vehicle component. Examples 6–7 yield identical S$3,532.54 GST whether quoting S$158,533 before rebate or S$95,533 after rebate with S$52,350 net ARF/COE/RF and S$400 road tax. Under ETS, COE value comprises discounted PQP plus the old vehicle’s COE rebate. Example 8 deducts S$20,000 ARF, S$45,000 PQP, S$6,000 rebate, S$350 RF and S$170 road tax from S$106,080: taxable gross S$34,560, GST S$2,853.58. A separately sold old body follows its own rules.
Hire purchase, discounts and the finance company
The trader supplies the financier and the financier supplies the hirer; the financier’s vehicle supply is taxable while its financing service is exempt. The trader accounts for the vehicle tax shown on its invoice to the finance company, excluding the new-vehicle regulatory components. A customer trade discount must be reflected as the net selling price on that invoice to reduce the trader’s tax. If it shows the gross price, tax follows gross. A credit note issued only to the customer cannot display GST or reduce the trader’s output tax on the finance-company sale.
GMS eligibility from 1 July 2025
Prior IRAS approval is no longer required from 1 July 2025: complete the self-review eligibility checklist. The eligibility conditions in 9.2 and 9.5 have force of law. The trader must acquire the used vehicle from a non-registered individual/business or a registered supplier using GMS, supported by a normal sales invoice proving that scheme. A purchase from a registered non-GMS supplier is not converted into GMS by declining input tax or losing the tax invoice. Issue a normal sales invoice, never a tax invoice showing GST; neither seller nor buyer claims input on the GMS vehicle.
GMS margin, losses and regulatory costs
GST is 9/109 of the positive gross margin between inclusive selling price and eligible cost. Example 9 S$25,000 less S$20,000 gives margin S$5,000/GST S$412.84; Box 1 is the full sale less tax, S$24,587.16, not just margin. Example 10 S$8,000 sale/S$10,000 cost gives zero tax but Box 1 S$8,000. Do not offset one sale’s loss against another’s margin. Upfront road tax, PQP and transfer fee may form cost before the sale; repairs, respray, administration and commissions do not, though their eligible GST may be claimed separately.
Examples 11–12: do not deduct separately recovered charges twice
Example 11 S$40,500 sale less S$10,900 acquisition, S$26,000 PQP, S$600 road tax and S$25 transfer fee gives cost S$37,525, margin S$2,975 and GST S$245.64. Repairs S$800 and commission S$500 are not margin costs. In Example 12 road tax and transfer fee are separately billed, so cost is only S$36,900; margin S$3,600 and GST S$297.25. Separate recovery prevents treating those charges again as deductible vehicle cost.
Discounted Sale Price Scheme and reporting
Charge GST on 50% of the tax-exclusive selling price regardless of profit/loss. Example 13 S$25,000 exclusive gives S$1,125 GST and Box 1 S$25,000. An inclusive price uses 9/209: Example 14 S$25,000 gives GST S$1,076.56 and Box 1 S$23,923.44. Use the scheme when GMS requirements fail or the buyer is GST-registered. Issue the prescribed tax invoice for registered customers who may claim eligible commercial-vehicle input. Reporting the whole exclusive sale value is distinct from applying the tax to half its value.
Bodies: eligible GMS, zero-floor cost and full-price fallback
The body GMS conditions in 11.1 have force of law and concern qualifying acquisitions and sales to another motor trader. Body cost equals vehicle purchase price less face PARF/COE rebate at deregistration, floored at zero. Example 15 S$85,000 less S$66,000 = S$19,000; S$20,000 inclusive body sale gives margin S$1,000/GST S$82.57/Box 1 S$19,917.43. Example 16 S$65,000 less S$66,000 has cost zero, not minus S$1,000: GST S$1,651.38/Box 1 S$18,348.62. If conditions fail, tax the full body price: Example 17 S$20,000 exclusive/GST S$1,800. Foregoing a non-GMS purchase input does not restore body GMS. ETS scrapyard body sales are also full-price taxable.
Exports, dismantled parts and temporary COE
A body export can be zero-rated if you export it and hold the required evidence, including permits/bills of lading naming you as exporter. Dismantled vehicle parts cannot use GMS: tax the full sale/scrap price. TCOE sold to another trader attracts GST on the value added: Example 18 S$95,000 quota premium and S$95,500 resale gives S$500 margin and S$41.28 GST. These three transactions cannot all be treated as ordinary used-car GMS.
Deposits and trade-ins
A part-payment deposit for a new vehicle generally attracts GST in full at collection, with final tax adjusted once non-taxable components are established. A deposit paid fully to LTA for COE bidding does not attract GST if supported by bid submission and deduction from the company bank account. A trade-in creates two supplies: the new sale and the buyer’s old-vehicle sale to the trader. Do not deduct trade-in value from the new-car taxable price. Example 19 S$158,533 new-car price less S$20,000 trade-in leaves payment S$138,533, but GST remains S$3,532.54 after the S$115,750 regulatory deductions.
Financing commission, interest and repossession
Financier referral commission is taxable. Hire-purchase interest supplied by the trader is separately disclosed exempt finance income in Box 3. Repossession itself is not a supply; resale is treated as the hirer’s sale, so GST is accounted on behalf of a registered hirer, with regulation 58 requiring direct payment to IRAS for a debt-satisfaction asset sale. A non-registered hirer’s resale does not attract GST under this rule. Recovery of towing/search/storage default costs is compensation, not a new taxable supply; their GST can be residual input subject to recovery/apportionment.
Insurance, accessories and other charges
When collecting the insurer’s premium as agent, do not charge an additional GST layer or claim the buyer’s insurance input; the insurer contracts with the buyer. Insurance referral commission is taxable. Example 20 S$137,605 package less regulatory S$115,750 and insurance S$1,605 gives taxable gross S$20,250/GST S$1,672.02. Accessories recovered from customers, IUs/OBUs and number plates are taxable whether sold separately or with a car, with eligible purchase input. Handling, collection, administration, agreement fees and commissions are taxable; late-payment interest is exempt and goes to Box 3.
Free promotional gifts and warranties
Vehicle-price-inclusive tyres/seat covers do not create an additional gift GST charge in the described promotion. Free warranty work is already covered by the taxed sale price. Reimbursement from the overseas dealer for warranty repairs on a vehicle you bought and resold with warranty likewise does not attract additional GST under the described arrangement. If instead appointed to repair another customer’s vehicle that you did not sell, billing the overseas dealer for repairs to a Singapore vehicle is taxable at 9%.
Input claims, deregistration and five-year records
Meet ordinary input conditions including regulations 26/27 and supplier registration; non-registered suppliers cannot support a GST claim. Pre-registration goods already consumed/supplied and services used for earlier supplies are not deductible; mixed pre/post use needs the applicable apportionment rules. On cancellation file F8 through the last registration day, one day before effective cancellation, and account for used-vehicle output based on 50% of open market value. Keep source documents, Missing Trader Fraud due-diligence steps/results/actions, accounting schedules, bank statements and other business evidence for at least five years. Inadequate records can cause disallowance and penalties.
Appendix 1: every stock-book and invoice requirement
The stock book must show stock number, purchase date/invoice/seller, registration/engine/chassis numbers, make/model, sale date/invoice/buyer, purchase price/input GST, sale price/output GST, disposal scheme, margin, sale-date rate and output accounted. For purchases from individuals create an invoice with both parties’ names/addresses, invoice/date/stock numbers, vehicle particulars and agreed price; do not alter that agreed invoice price. GMS sales invoices need trader name/address/GSTN, buyer name/address, invoice/date/stock number, full vehicle details/total and the required statement that the vehicle is sold under GMS and neither party can claim vehicle input. Discounted-price tax invoices additionally show Tax Invoice prominently, supply type, any cash discount, exclusive value, rate/tax and inclusive total. Keep copies and update the stock book. The GMS sale-invoice requirements in Appendix 1(3)(a) have force of law.
Appendices 2 and 5: the 30/70 hire-purchase samples
The samples allocate value/tax by the hirer’s 30% payment and financier’s 70%, excluding tax the hirer pays on the financier’s behalf. New-car price S$158,533 less downpayment S$47,559.90 and financier GST S$2,472.78 leaves hire-purchase amount S$108,500.32. Used discounted price S$25,000 less S$7,500 and financier GST S$753.59 leaves S$16,746.41. An eligible commercial-vehicle hirer needs tax invoices from both trader and financier; paying the financier’s tax through the trader does not replace that invoice. The trader accounts total tax S$3,532.54 or S$1,076.56; the financier accounts its own respective S$2,472.78 or S$753.59 supply.
| Sample allocation | Supply value S$ | GST S$ |
|---|---|---|
| New vehicle: hirer share | 11,775.14 | 1,059.76 |
| New vehicle: finance share | 27,475.32 | 2,472.78 |
| New vehicle: total | 39,250.46 | 3,532.54 |
| Used discounted: hirer share | 7,177.03 | 322.97 |
| Used discounted: finance share | 16,746.41 | 753.59 |
| Used discounted: total | 23,923.44 | 1,076.56 |
Appendices 3 and 4: GMS versus discounted invoices
The GMS sample shows a S$25,000 sale, S$2,000 deposit and S$23,000 balance, with the no-input scheme statement and no separate GST. The discounted-price sample shows S$25,000 exclusive, S$1,125 tax, S$26,125 total, less S$5,000 deposit = S$21,125 balance. Vehicle identifiers, invoice/date and stock number link each document to the stock book. Sample company/address details are illustrative, not counterparties to use in real invoices.
Appendices 6–8: all computation templates
Retain invoice date/number, vehicle number and each source amount alongside these formulas. Appendix 6 gives Box 1 combined new/off-peak S$77,594 after dropping cents, with GST S$3,532.54 and S$3,450.96 respectively. Appendix 7 gives GMS S$40,254.36 and discounted S$23,923.44, combined Box 1 S$64,177, and respective GST S$245.64/S$1,076.56. Appendix 8’s two body rows total GST S$1,733.95 and supply S$38,266.05, reported Box 1 S$38,266. Non-positive margins mean tax zero and full sale reported; no negative tax. Separate recovered LTA charges are not deducted again.
| Template | Computation |
|---|---|
| New car | Inclusive price − net ARF/COE/RF/road tax; GST = remainder ×9/109; Box1 = remainder − GST |
| Off-peak car | Net ARF/COE = ARF + COE − rebate, then use new-car formula |
| Used GMS | Margin = sale − qualifying purchase/regulatory costs; GST = positive margin ×9/109; Box1 = full sale − GST |
| Used discounted | GST = inclusive sale ×9/209; Box1 = full sale − GST |
| Body GMS | Cost = max(vehicle purchase − face deregistration rebate,0); GST = positive(sale−cost)×9/109; Box1 = sale−GST |
Version history and enquiries
The amendments cover Missing Trader Fraud records, input-claim references, 2023/2024 rate example changes, clarification of financing from the financier’s perspective in December 2024 and removal of prior GMS approval in July 2025. The invoice examples use 1 January 2024 sample dates while the guide’s cover is January 2026. Enquiries go to IRAS GST through Contact Us; vehicle registration/regulatory values must be supported by LTA documents and import relief by Customs arrangements.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
Read the official PDF ↗