The Ultimate GST Guide
Your comprehensive guide to Goods and Services Tax compliance in Singapore.
GST Computation: Output vs Input Tax
GST computation centers on two key concepts: Output Tax and Input Tax.
Net GST Payable/Refundable = Output Tax - Input Tax
- Output Tax: The 9% GST that your business charges and collects from customers on sales.
- Input Tax: The GST that your business pays to suppliers on purchases, or to customs on imported goods.
Conditions for Claiming Input Tax
To claim input tax on business expenses, you must meet the following criteria:
- Your business must be GST-registered.
- The goods or services must have been supplied to your business.
- The goods or services must be used or intended to be used for business purposes.
- You must hold a valid tax invoice or import permit at the time of claim.
Disallowed Input Tax Expenses
Under IRAS regulations, certain expenses are strictly barred from input tax claims:
- Benefits provided to employees' family members.
- Club subscription fees.
- Medical expenses and medical insurance for employees (unless mandated by Work Injury Compensation Act).
- Expenses incurred on passenger motor cars (purchase, rental, maintenance, fuel).
