Can I Claim Gst For Period Before I Registered For A Gst Number

When purchasing from GST-registered suppliers or importing appurtenances into Singapore, you may have incurred GST (input tax). You can claim the input taxation incurred when you satisfy all of the atmospheric condition for making such a claim. You should only claim input tax in the accounting period respective to the date of the invoice or import allow.

On this page:

Weather for claiming input tax

Conditions for claiming input tax

Yous can merits input tax incurred on your purchases only if all the post-obit conditions are met:

1. Yous are GST-registered;

2. The appurtenances or services are supplied to you or imported by you;

iii. The goods or services are used or will be used for the purpose of your business;

Determining goods and services "for the purpose of business"

Goods and services are considered to be used "for the purpose of business" when they can be attributed to business organisation activities mainly concerned with making supplies for a consideration (east.g. payment in either money or in kind).

Examples of non-business activities:

Activities with non-concern objects in philanthropic, religious, political, patriotic or public domain
Free activities provided without commercial reasons
Activities that are purely private or personal If you have both business and non-business activities, y'all can merely claim input tax owing to business organization activities relating to taxable supplies.

Please refer to GST on Non-Business Receipts (584KB) on determining your business and non-business concern activities, and how to apportion your input tax claims (where necessary).

4. Local purchases are supported past valid tax invoices addressed to yous, or simplified tax invoices, at the time of challenge of the input tax;

Examples of invalid tax invoice

Some common examples of tax invoices which are non valid are:

Missing details on the taxation invoice	The supplier'south name, address and GST registration number are not shown. For purchases >S$1,000, the words "tax invoice", name of customer or GST amount is not shown. For purchases ≤ S$1,000, the GST corporeality or a statement similar to "price payable includes GST" is not shown. For purchases in foreign currency, the Singapore dollar equivalent amounts are not shown.
Supplier is non GST-registered	Your supplier does not have a GST registration number or the GST registration number shown has expired/is not valid. Y'all can bank check on your supplier'due south GST registration condition, period of registration and GST registration number using the GST Registered Business organization Search.

Illustration of an invalid tax invoice

Invalid tax invoice

If the invoice issued by your supplier contains the to a higher place errors or has any other missing details, you lot should request that your supplier re-issues you a valid taxation invoice before yous go along to make the input taxation merits. You do not demand IRAS' approving to make the asking from your supplier for a valid tax invoice.

five. Imports are supported past import permits that prove that yous are the importer of the goods;

six. The input revenue enhancement is directly owing to taxable supplies (i.east. standard-rated supplies and nothing-rated supplies), or out-of-scope supplies (eastward.thousand. third country sale of goods), that would be taxable supplies if fabricated in Singapore;

vii. The input tax claims are non disallowed under Regulations 26 and 27 of the GST (General) Regulations; and

Disallowed input tax claims

Regulations 26 and 27 of the GST (Full general) Regulations do non let y'all to claim input tax incurred on the post-obit expenses:

Benefits provided to the family members or relatives of your staff;
Costs and running expenses incurred on motor cars that are either:
- registered under the business' or individual's name, or
- hired for concern or private employ.
Club subscription fees (including transfer fees) charged past sports and recreation clubs;
Medical expenses incurred for your staff unless
1. the expenses are obligatory under the Work Injury Compensation Act or nether any commonage agreement inside the meaning of the Industrial Relations Human activity; or
2. the medical handling in respect of expenses incurred on or after 1 Oct 2021 is provided in connection with any health risk or requirement arising on account of the nature of the work required of your staff or his piece of work surroundings; and
Medical and accident insurance premiums incurred for your staff unless the insurance or payment of compensation is obligatory under the Work Injury Compensation Act or under any collective agreement within the pregnant of the Industrial Relations Act; and
Whatsoever transaction involving betting, sweepstakes, lotteries, fruit machines or games of chance.

8. Yous have taken reasonable steps to define and ended that the goods or services were not part of a Missing Trader Fraud organisation and the conclusion is one that a reasonable person would accept made.

Determining input tax claims on mutual items

Input tax treatment for common expenses

Particular	Can I merits input tax?
Expenses incurred by employees on behalf of the visitor E.g. Expenses incurred for making business calls using employee'south personal mobile phone	Subject area to the weather for input tax claim, such claims are allowed if you can prove that the employee is acting as an agent of the taxable person (i.eastward. the business) in receiving the supply of goods or services. For example, yous are able to provide evidence of reimbursements made to the employee and have recognised the bills every bit business organization expenses in your accounts etc. Yous demand to segregate the business expenses from the private expenses. GST incurred for individual expenses is not claimable.
Entertainment expenses	Subject to the conditions for input taxation merits, these claims are immune if you take the supporting taxation invoice addressed to y'all or the simplified revenue enhancement invoice if the purchase value (including GST) is non more than than $ane,000. As an administrative concession, a receipt which contains all the data required in a simplified tax invoice can also be used to merits the input tax incurred for entertainment expenses exceeding $i,000 (including GST). You must also go along alternative documentary payment evidence and information on amusement details (such as proper noun of person entertained, purpose of entertainment, person incurring the expenses, etc.) to support your claim. This concession is applicative only to expenses on food and drinks. In the event that an expense comprises of items other than nutrient and drinks (eastward.g. rental of yacht), a proper tax invoice is however required to back up the full claim.
Staff medical expenses	Input tax claims are disallowed under Regulation 26 of the GST (Full general) Regulations. All the same, subject to the conditions for input tax claim, these claims are allowed if: the medical expenses (eastward.thou. pre-employment and annual wellness screening expenses) are obligatory nether the Piece of work Injury Compensation Act (WICA) or under whatsoever collective agreement under the Industrial Relations Act (IRA); or the medical treatment in respect of expenses incurred on or later on 1 October 2021 is provided in connection with any wellness risk or requirement arising on account of the nature of the work required of your staff or his work environs; and the medical expenses are incurred pursuant to any written law of Singapore concerning the medical treatment or the provision of a medical facility or medical practitioner. For example, mandatory medical examinations for staff under the Workplace Safety and Health (Medical Examinations) Regulations; or the medical treatment is related to COVID-19 and the staff undergoes such medical handling pursuant to any written informational (including industry circular) issued past, or posted on the website of, the Regime or a public authority. For example, COVID-19 swab tests for outbound travellers who are brash to become pre-deviation COVID-xix swab tests (if travel is for business purposes). To decide whether the medical expenses are obligatory under WICA, delight visit the Ministry building of Manpower (MOM) webpage on WICA or contact MOM at +65 6438 5122. For clarification on collective agreements under IRA, please consult your trade wedlock.
Medical and accident insurance premiums for your staff	Input taxation claims are disallowed nether Regulation 26 of the GST (General) Regulations. Withal, field of study to the weather for input tax merits, y'all are allowed to merits input tax if such insurance or the payment of compensation is obligatory nether the Work Injury Bounty Human action (WICA) or under any collective agreement under the Industrial Relations Act (IRA). For example, you tin can claim input tax for work injury compensation insurance that is obligatory under WICA for both local and strange employees performing: Manual work, regardless of salary level; or Non-manual work, earning $two,600 or less a month. If you crave more information on WICA, please visit the Ministry of Manpower (MOM) webpage on WICA, contact MOM at +65 6438 5122 or contact your insurance amanuensis.
Cost and running expenses of motor vehicles Eastward.g. Cost incurred for purchase of car, lorry and motorbike E.g. Running expenses such every bit petrol and parking fees	For motor cars that are registered under the business' or individual's proper name, or hired for business or individual utilize: Input revenue enhancement claims are disallowed under Regulation 27 of the GST (General) Regulations. For other motor vehicles (e.g. lorry, van, motorcycle) Subject to the atmospheric condition for input taxation claims, input tax claims are allowed on motor vehicles that practise not fall under the definition of a 'motor car' (i.e. constructed or adapted for the wagon of not more than 7 passengers excluding the driver, and the weight of which unladen does not exceed 3,000 kilograms).
Buy of goods that you lot gave away for free to customers, suppliers, staff etc. Due east.yard. Gifts, samples and lucky depict prizes	Input tax claims are allowed, subject to the weather condition for input tax claim. Nevertheless, you lot may be required to account for output tax on the Open up Market place Value (OMV) of the goods if its cost exceeds $200. Refer to our website on Souvenir and Sample for more data.
Club subscription fees charged past sports and recreation clubs Due east.g. Joining fee, subscription fee, membership fee and transfer fee	Input revenue enhancement claims are disallowed under Regulation 26 of the GST (Full general) Regulations.
Expenses for apply of club facilities E.g. Green fees, buggy fees, rental of golf game bag locker and dining at club restaurants	Input tax claims are allowed, subject to the conditions for input revenue enhancement merits.
Family unit benefits for staff E.g. School fees for children of your departer staff	Input tax claims are disallowed under Regulation 26 of the GST (General) Regulations.
General insurance for the business	Input tax claims are allowed on general insurance expenses (eastward.grand. fire insurance, break-in insurance, machinery risks insurance, trade cargo insurance), subject area to the weather for input tax claim. As an administrative concession, input revenue enhancement can too be claimed on public liability insurance. However, this does not utilize if the premiums relating to the insurance coverage of medical costs for third parties tin can be separately identified. Yous can but claim GST incurred on the portion of premiums not relating to the coverage of medical costs.
GST/VAT incurred for purchases fabricated overseas E.k. GST charged to you nether the Australian tax jurisdiction	Input taxation claims are disallowed because the GST/ VAT was paid to a party outside of Singapore tax jurisdiction.
Properties purchased past not-legal entities	Subject to the conditions for input revenue enhancement claim, to merits input tax* on properties (both movable and immovable properties and intellectual properties) acquired through a bare trustee, the GST-registered non-legal entity must keep the following: Tax invoice addressed to the bare trustee; and Documents (e.g. trust human activity) or records showing that the purchase is made past the bare trustee on behalf of the GST-registered non-legal entity.

Common errors on input tax claims

Every year, effectually three,000 GST-registered businesses are selected for audit and the most common mistakes discovered are incorrect input tax claims. On average, more than $xviii,000 in GST and penalties are recovered yearly from each concern due to such errors.

Become to know the common input tax errors made by businesses and learn how you can avoid them through our series of videos!

FAQs

I satisfy all the weather condition for input taxation claim. How do I declare my purchases and input tax in GST render (F5)?

Full value of taxable purchases (Box five):
Declare the value of all your imports, standard-rated and zero-rated purchases and expenses (excluding the GST amount) made in the course or furtherance of your business organization.

Input tax and refunds claimed (Box seven):
Declare the input tax (i.e. GST amount) incurred for your imports, standard-rated purchases and expenses made in the course or furtherance of your business.

The import let shows me as the importer. I too receive an invoice from my supplier. Should I declare the value of taxable purchases and input taxation based on the import permit or the invoice in my GST render (F5)?

You lot should declare the GST reflected in the import permit issued by Singapore Customs as your input tax in Box 7 of the GST return. Delight ensure that in that location is no duplicate claim on the aforementioned buy/ import.

Notwithstanding, for the value of taxable purchase in Box v, yous may declare either:

The value of imports reflected on the import allow; or
The value of goods reflected on your invoice.

Where the value reflected in the invoice issued by your supplier is unlike from the value reflected in the import permit, you lot should be able to reconcile the 2 values.

I purchase appurtenances from my local suppliers and they bill me in foreign currencies. Do I merits GST based on the corporeality converted using my own exchange rates?

Where purchases are negotiated in foreign currencies, your supplier has to indicate the GST payable on the tax invoice in Singapore dollars at a charge per unit of substitution determined by him.

You should claim GST incurred on such purchases based on the Singapore dollar GST stated in the revenue enhancement invoice. This requirement is even so applicable even though you may have recorded the Singapore dollar value of the purchases in your own books at a rate of exchange unlike from that used past the supplier.

Can I claim input revenue enhancement if I am not GST-registered?

No, yous cannot claim any input taxation if y'all are non GST-registered.

My business has stopped making taxable supplies and is in the process of winding down. I have incurred input tax on expenses (i.e. rental, utilities) which does not relate to any taxable supplies made earlier. Tin can I merits the input taxation incurred as I am still GST registered?

One of the weather condition for input tax claim is that the input revenue enhancement incurred is directly attributable to the making of taxable supplies. As you practise not satisfy this status, you lot cannot claim the GST incurred on such expenses.

You should also abolish your GST registration since y'all have stopped making taxable supplies. Refer to our webpage on Cancelling GST Registration.