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The Steps to Avoid Common GST Errors in Singapore

How to Avoid Common GST Errors in SingaporeDon’t know how to file GST returns in Singapore? Want to make sure you’re filing your returns the right way? You’re at the right place. This blog post we’ll let you know what common GST errors you should avoid when filing GST returns. in Singapore. Goods and Services Tax also known as GST is one of the major contributors to tax incomes in Singapore. So the government of Singapore takes it very seriously and imposes heavy penalties for not filing a correct GST return. Let’s find out what you should consider when submitting your GST returns:


Input Tax Claims Must Be Supported With Valid Documents

Before you make input tax claims, make sure you meet all the conditions and have valid documents supporting your claims. If you had under-declared or over-declared the worth of your imported goods, you may need to make changes in your returns and inform Singapore customs.


Know When Input Tax Needs to Be Apportioned

GST registered businesses making exempt supplies (e.g. sale and lease of residential properties, financial services) should be aware of the thresholds on exempt supplies under the De Minimis Rule. When the De Minimis Rule is satisfied, you may claim all input tax incurred as per normal. When the De Minimis rule is not satisfied, you’re not allowed to claim input tax directly attributable to the making of exempt supplies. For input tax that cannot be identified as directly attributable to either taxable or exempt supplies (residual input tax), the amount that can be claimed has to be apportioned accordingly.


Do Not Claim Disallowed Input Tax

GST Regulations (namely regulations 26 & 27) don’t allow the following expenditures to be claimed as Input Tax:

  • Advantages provided to the relatives and family members your staff
  • Costs & running expenditures incurred on motor vehicles that are either registered under individual’s or business’s name, or hired for private or business use.
  • Subscription fees charged by recreation and sports clubs
  • Medical expenditures for your staff unless they’re mandatory under ‘’Work Injury Compensation Act.’’
  • Any deal involving, sweepstakes, lotteries, betting, games of chance or fruit machines.


Claim Input Tax Accurately in the Right Period

Your input tax claim should be in the accounting period that corresponds to the date mentioned in the import permit or tax invoice. There’s no point in making a claim in a period that doesn’t match the required date.

If this is your first time filing GST returns in Singapore and you don’t know much about it, it’s highly advised that you hire a professional tax preparation company to stay on the safe side.

Contact 3E Accounting Singapore to avoid common GST errors in Singapore. See GST Services for more information about our services.