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recovery of expenses generally you will need to charge gst when you recover expenses from your related companies customers or suppliers if the expenses were incurred by you as a principal recovery of expenses for the purchases made on behalf of another party lets say mnc private limited is a multinational gst registered company incorporated in singapore with various business arms in retail properties wholesale trade and technical services rc private limited a related company asked mnc to purchase the goods on their behalf as mnc would be able to command better prices from suppliers rc will reimburse mnc at a later date mnc issued a purchase order to a supplier abc private limited and instructed them to deliver the goods directly to rc as abc is not gst registered no gst is charged to mnc the contracting party to recover this expense mnc issued a tax invoice to rc as mnc entered into the contract with abc mnc is considered a principle and the recovery of this expense is a reimbursemen