• EH Lim

Realized exchange rate differences - the exempt supplies


A new GST Form 5, v1.0.9, was included in the MoneyWorks accounting software update (v7.1.7). The new GST Form 5 includes the realized exchange gain/loss (exempt supplies) in the Box 3 of the GST Form 5.

Ask IRAS:

Q: Must I report exchange gains/losses in the GST return?

A: Yes, You are required to account only realized exchange rate differences as your exempt supplies in your GST F5 return.

Assume that your base currency is in SGD (Singapore dollar). You had a USD (US dollar) invoice of US$10,000 (subject to 7% GST) at an exchange rate of 1 SGD : 0.8 USD. The SGD equivalent amount of this invoice was at S$13,375.

When payment received in the following month at an exchange rate of 1 SGD : 0.7 USD. The SGD equivalent amount of S$15,285.71 was deposited into the SGD Bank.

The exchange differences in this case is at 1,910.71 (15,285.71 - 13,375). Hence, 1,910.71 is added to the Box 3 of the GST Form 5 since realized exchange rate differences are part of the exempt supplies.

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