Issue 10

Jun 2015

GST BULLETIN
CONTENTS
Welcome to the 10th Issue of
the GST Bulletin!

1. GST Updates
Budget 2015 changes (Pre-registration claims and
GST remission for REITs and RBTs)
New Section 33B
New price display requirements

This biannual newsletter is

published every June and
December. It features key
changes in GST law and tax
treatment on GST issues
commonly encountered by GSTregistered businesses.

2. Knowledge Sharing
Input tax claiming conditions
Cancelling your GST registration? Submit your
application online!

Website: http://www.iras.gov.sg

3. Frequently Asked Questions

GST Updates
Budget 2015 Changes: Pre-registration Claims

Generally, GST incurred before GST registration (pre-registration GST) on goods consumed or
supplied; or services used to make supplies before registration is not claimable. Apportionment is
required if the goods or services are used to make supplies before and after GST registration or the
goods are partially consumed before GST registration.
For businesses that are registered for GST on or after 1 Jul 2015, the pre-registration GST claim rules
will be simplified such that full claims are allowed on the following goods and services that are
acquired within 6 months before your GST registration date:
1. Goods held by your business at the point of GST registration; and
2. Property rental, utilities and services, which are not directly attributable to any supply made by your
business before GST registration
Example: ABC Pte Ltd is a newly incorporated property investment company.
Apr 2015

Incorporated

May 2015

Jun 2015

Incurred $500
consultancy
service fees

Purchased commercial
Property at $1 million

Before
Budget Changes
Input tax on
commercial property
partially claimable
since supplies made
prior to registration

Jul 2015
Started to rent
commercial property

After
Budget Changes
Input tax for
consultancy
services partially
claimable

2015 Inland Revenue Authority of Singapore

ABC Pte Ltd can

claim input tax on
commercial property
in full.

Aug 2015
GST registered

ABC Pte Ltd can claim

input tax of $500 for
consultancy services in
full as long as the
services are not directly
attributable to supplies
made before Aug 2015.

Page 1 of 6

GST Updates
Budget 2015 Changes:
GST Remission for REITS and RBTs

As part of the continuing effort to promote the listing of Real Estate Investment Trusts (REITS) and
Registered Business Trusts (RBTs) in the infrastructure business, ship leasing and aircraft leasing sectors,
the GST remission for REITS and RBTs has been extended till 31 Mar 2020.
In addition, the GST remission is enhanced to allow REITS and qualifying RBTs to claim:
GST on business expenses* incurred to set up Special Purpose Vehicles (SPVs) that are used solely to
raise funds for the REITS and qualifying RBTs; and
GST on the business expenses* of these SPVs
*Excluding Regulation 26 and 27 disallowed expenses

Points to
note

GST claims are still subject to apportionment using existing formula

Funds raised by these SPVs must be on-lent to the REITs or qualifying RBTs and be
used to finance the business activities of the REITs or qualifying RBTs
The GST must be incurred in the qualifying period of 1 Apr 2015 to 31 Mar 2020

Claiming GST on the re-importation of

value-added goods
From 1 Jan 2015, if you are a GST-registered business sending goods belonging to your local
customers (whether GST-registered or not) or GST-registered overseas customers for value-added
activities outside Singapore, you can claim input tax on the GST incurred on re-importation of the goods
if you meet the qualifying conditions.

Before 1 Jan 2015 GST

incurred on re-import of
goods not claimable in
full

Your overseas
sub-contractor
(3) Sends
goods for
further VA
activities (B)

(4) Re-import goods

after VA activities
completed

From 1 Jan 2015 GST

incurred on re-import of
goods is claimable if
import permit is in your
name

Overseas
(1) Consigns his
semi-finished goods
for value-added
(VA) activities

A (customer)

Singapore

You
(5) Delivers valueadded goods

(2) Performs part

of the VA
activities (A)

(5) Supply of VA
activities (A+B)

For more information on Remission of GST for REITs and RBTs, please refer to
"GST: Concession for REITs and Qualifying Registered Business Trusts Listed in Singapore
For more information on Section 33B, please refer to GST: Claiming of GST on re-import of value-added goods
2015 Inland Revenue Authority of Singapore

Page 2
5 of 6

GST Updates

New Price Display Requirements

It is important for the public to know upfront the final price of goods and services that they have to pay.
Hence, GST registered business must show GST-inclusive prices on all price displays (e.g. price tags,
price lists, advertisements, publicity brochures, website). Prices that are quoted, whether written or
verbal, must also be GST-inclusive.
With effect from 1 Apr 2015, if businesses display both GST-inclusive and GST-exclusive prices, the
GST-inclusive price must be at least as prominent as the GST-exclusive price.

Not Acceptable

Acceptable
Price:
$1070 (inclusive of GST)
$1000 (exclusive of GST)

Price:
$2000
($2140 inclusive of GST)

The following table illustrates the acceptable and non-acceptable formats of price display:

Acceptable

Not Acceptable

$107

$100+

$107 w/GST
$107 (inclusive of GST)

$100+GST
$100+7% GST

$107 w/GST ($100)

$107 w/GST($100)

$107 w/GST ($100)

$100 ($107 w/GST)

$100 ($107 inclusive of GST)

$100 ($107 inclusive of GST)

$100 ($107 inclusive of GST)

$100 (exclusive of GST)

$107 (inclusive of GST)

Failure to comply with the price display requirements is an offence that can result in a fine of up to
$5,000 or in default of payment, an imprisonment term of up to 6 months. If you are not displaying GSTinclusive prices, please rectify your price displays immediately.
For more information on price display requirements, please refer to our webpage on displaying price.
2015 Inland Revenue Authority of Singapore

Page 3 of 6

Knowledge Sharing
What are the input tax claiming conditions?

1. You are GST-registered;

2. Goods or services must have been supplied to you or the goods have been imported by you;
For local purchases:
Supported by valid tax invoices addressed to you, or simplified tax invoices
For imports:
Supported by import permits which show you as the importer of the goods.
3. The goods or services are used or to be used for the purpose of your business;
4. The input tax is directly attributable to taxable supplies (i.e. standard-rated supplies and zero-rated
supplies), or out-of-scope supplies which would be taxable supplies if made in Singapore; and
5. The input tax claims are not disallowed under Regulation 26 and 27 of the GST (General)
Regulations.

What are the disallowed input tax claims?

Note:
Input tax is not claimable even if these expenses are incurred for
business purpose and in the making of taxable supplies.
If you had previously claimed input tax on these disallowed expenses,
you should voluntarily disclose the errors and you may enjoy lower
penalties under Voluntary Disclosure Programme.

Club subscription fees

charged by sporting and
recreational clubs

Benefits provided to the

family members or
relatives of your staff

Medical expenses
incurred for your staff*

Medical and accident

insurance premiums
incurred for your staff*

Costs and running

expenses incurred on
motor cars

Any transaction(s)
involving betting,
sweepstakes, lotteries,
fruit machines or games
of chance

* Medical expenses and/or medical and accident insurance premiums incurred for your staff will be claimable if medical expenses
and/or insurance or payment of compensation are mandatory under the Work Injury Compensation Act or under any collective
agreement under the Industrial Relations Act.

For more information on input tax claiming conditions and the disallowed input tax claims, please refer to conditions for claiming
input tax.
2015 Inland Revenue Authority of Singapore

Page 4 of 6

Knowledge Sharing

Example: Debit Note To claim or not to claim?

Your company has purchased a tablet (Sales Price: $1200) for business
purposes. It will be used in the course of making taxable supplies. The
GST-registered supplier issues only a debit note, which does not
provide the information that is required in a tax invoice, to you.

Your company is not entitled to input tax claims as your company does
not have proper supporting documents. One of the conditions for
claiming input tax is that your purchase must be supported by valid tax
invoices addressed to your company. You should request for a valid tax
invoice from your supplier in order to claim input tax.

Cancelling your GST registration?

Submit your application online!
Have you stopped making taxable supplies? Or has your
business ceased or fully transferred to another person? If
your answer is Yes, then you have to apply for
cancellation of GST registration.
Most online applications for de-registration are now
approved instantaneously and the process is a breeze.
Paper application, on the other hand, generally needs a
longer processing time.

How to cancel your GST registration online?

Login to myTax
Portal to apply
for
Cancellation of
GST
Registration*.

After login, click on

Goods and Services
Tax > Apply for
cancellation of GST
registration on the left
menu.

After application, a
confirmation page
stating the effective
date of cancellation
will be shown if
application is
approved.

Otherwise, you will

receive an
acknowledgement
page on the receipt of
the application and will
be informed of the
status of application
within 10 working
days.

For more information on what constitutes a valid tax invoice, please refer to our webpage on Invoicing customers.
*To cancel your GST online, your authorised Approver (i.e. the staff who is authorised to prepare and/or approve the GST
returns) may do so via the e-Service Apply for Cancellation of GST Registration via myTax Portal.
2015 Inland Revenue Authority of Singapore

Page 5 of 6

Frequently Asked Questions

3
Q1

What if I have claimed the GST on the re-import of value-added goods

but subsequently obtain reimbursement for the import GST?
If you had claimed the GST on the re-import of the value-added goods as your
input tax, but subsequently obtain reimbursement on the import GST, you are
required to repay the import GST to the Comptroller.
You have to account for the GST as output tax in the GST return (i.e. Box 6)
corresponding to the accounting period in which you obtain reimbursement for
the import GST.

Q2

Can I claim input tax on running costs of a company-owned car used by

my sales personnel?

No. Even if the car is used for business purposes, input tax claim for its running
costs is disallowed under Regulation 27 of our GST General Regulations.

Q3

I want to display both GST-inclusive and GST-exclusive prices, but with

the GST-inclusive price being less prominent. Can I be exempted from
the new price display requirement?
No. The GST law does not allow the Comptroller of GST to exempt GSTregistered businesses from the new requirement when they choose to display
both GST-inclusive and GST-exclusive prices.

Q4

We can only claim the GST incurred on goods purchased or imported

into Singapore when the goods are sold and output GST is accounted
for. Is this correct?
Input tax can be claimed based on the date of suppliers tax invoices or import
permits, as long as all the conditions are satisfied. You do not need to wait until
the goods are sold to claim the input tax.

Disclaimer
The contents of this bulletin are provided on an as is basis
without warranties of any kind. IRAS shall not be liable for any
damages, expenses, costs or loss of any kind however caused
as a result of, or in connection with your use of this bulletin.
This information aims to provide a better understanding of
taxpayers tax obligations and is not intended to
comprehensively address all possible tax issues that may
arise. This information is correct as at 30/06/2015. While every
effort has been made to ensure that this information is
consistent with existing law and practice, should there be any
changes, IRAS reserves the right to vary our position
accordingly. Taxpayers may wish to refer to the IRAS website
at www.iras.gov.sg for the latest updates.

2015
2015 Inland
Inland Revenue
Revenue Authority
Authority of
of Singapore
Singapore

Tax Academy of Singapore organises GST courses for

professionals/ businesses who wish to attain basic/ in-depth
knowledge of GST.
Upcoming GST Courses organised by Tax Academy:
Executive Tax Programme Level I (GST) Nov 2015
Executive Tax Programme Level II (GST) Oct 2015
For more information, please visit www.taxacademy.sg.
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