The Ultimate GST Guide
Your comprehensive guide to Goods and Services Tax compliance in Singapore.
GST Recovery on Business Expenses
Recovering GST is key to preventing tax leakage. In addition to standard input tax claims, businesses can utilize specific recovery mechanisms.
1. Bad Debt Relief
If you have paid output tax to IRAS but your customer fails to pay you, you can claim bad debt relief to recover the output tax. Conditions include:
- At least 6 months must have elapsed since the invoice date.
- You have taken reasonable steps to recover the debt.
- The debt has been written off in your accounts.
2. Pre-Registration GST Recovery
Businesses can recover GST incurred on goods and services purchased before their official GST registration date, subject to specific conditions:
- For physical goods, they must still be held by the business on the registration date.
- For services, they must have been consumed within 6 months before the registration date and relate directly to current taxable business activities.
