Sam who lives in a high-end condominium, went to the management office of his condominium to pay sinking fund and maintenance fee for April 2015. He was informed by Stephanie, the officer in the management office that the abovementioned fees are now subject to GST. Is this true?
The Ministry of Finance has issued a press release dated 26 March 2015 that the maintenance fee and sinking fund for all residential strata are exempt supply. This is further confirmed by the Goods and Services Tax (Exempt Supply) (Amendment) Order 2015.
However, do note that this only applies to stratified residential properties.
As such, Sam does not need to pay the GST on maintenance fee and sinking fund for his condominium.
Link for the Goods and Services Tax (Exempt Supply) (Amendment) Order 2015 :
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