Most GST-registered businesses in Singapore discover the same thing at their first IRAS query: claiming input tax is easy, and defending the claim is not. The rules turn on documentation and purpose rather than on how reasonable an expense feels. This article sets out what you can and cannot claim under Singapore GST, and how to keep those claims defensible.
Who this applies to
Input tax claims concern any business registered for GST with the Inland Revenue Authority of Singapore (IRAS), whether registration was compulsory or voluntary. If your taxable turnover exceeded SGD 1 million in the past calendar year, or you reasonably expect it to exceed SGD 1 million in the next 12 months, registration is compulsory and these rules apply from your effective date of registration.
- GST-registered companies incorporated with ACRA, including newer entities that registered voluntarily
- Sole proprietorships and partnerships registered for GST
- Businesses making a mix of taxable and exempt supplies, such as those with residential rental or financial services income
Businesses that are not GST-registered cannot claim input tax at all. For them, the 9% GST charged by suppliers is simply a cost.
Key rules and requirements in Singapore
Input tax is the GST you incur on business purchases, expenses and imports. You offset it against output tax, the GST you charge customers, and pay IRAS the net figure. Before any amount qualifies, it has to clear every condition in the Goods and Services Tax Act.
The core conditions
- You were GST-registered when the expense was incurred
- The goods or services were supplied to you, not to a director or employee in their own name
- The purchase was for business purposes, not private consumption
- The input tax is attributable to taxable supplies you make, meaning standard-rated or zero-rated supplies
- You hold a valid tax invoice, simplified tax invoice, or import permit naming you as importer
- The claim is not blocked under Regulations 26 and 27 of the GST (General) Regulations
- The claim is made within five years from the end of the relevant accounting period
What is specifically disallowed
Regulations 26 and 27 block certain claims outright, however genuinely business-related they are:
- Benefits given to family members or relatives of your staff
- Club subscription and transfer fees charged by sports and recreation clubs
- Medical expenses and medical or accident insurance premiums for employees, unless an exception applies
- Motor cars registered under the business or an employee’s name, covering both the car and its running costs such as petrol, parking, servicing and insurance
- Any transaction involving betting, sweepstakes, lotteries or games of chance
The medical exception matters in practice. Input tax on medical expenses and insurance is claimable where the cost is obligatory under the Work Injury Compensation Act or a collective agreement, and, since 1 January 2023, where it addresses a health risk arising from the nature of the work or the work environment, or forms part of risk management for business continuity. Cover taken purely as a staff perk remains blocked.
The motor car block is wide, catching private and company cars alike, and running costs as well as purchase price. Commercial vehicles such as lorries, vans, pick-ups and motorcycles sit outside it, so input tax on those can be claimed normally.
Partial exemption and the de minimis rule
If your business makes exempt supplies, such as residential lease or certain financial services, you are partially exempt and cannot claim input tax attributable to them. Under the de minimis rule you may still claim in full if total exempt supplies do not exceed an average of SGD 40,000 per month and do not exceed 5% of the total value of all taxable and exempt supplies. Breach either limit and you must apportion your residual input tax.
Step-by-step process
- Check the supplier’s GST status on the IRAS GST-registered business search. GST charged by an unregistered business is not recoverable.
- Collect the right document. Above SGD 1,000 including GST you need a full tax invoice showing your business name and address, the supplier’s GST registration number, an invoice number and date, and the GST stated separately. At or below that, a simplified tax invoice or qualifying receipt will do.
- Test the business purpose. Decide whether the expense supports taxable supplies, is partly private, or relates to exempt supplies, and record the reasoning where it is not obvious.
- Screen against the blocked list. Motor car costs and staff medical expenses most often slip through.
- Handle imports separately. Import GST is claimed on the import permit naming your business as importer, not the overseas supplier’s invoice.
- Apportion where required, applying your method consistently and performing the longer period adjustment at financial year end.
- File the return. Report input tax in Box 7 of the GST F5 through the IRAS myTax Portal, within one month of the end of each accounting period.
Common mistakes to avoid
- Claiming on a quotation, delivery order or statement of account. None of these is a tax invoice, and IRAS will disallow the claim on documentation grounds even where the expense itself is valid.
- Claiming on an employee expense form without the underlying invoice. A reimbursement claim is not evidence of a supply made to the company.
- Treating company car costs as claimable because the car is used for client visits. Business use does not unlock the motor car block.
- Claiming GST on overseas invoices where no Singapore GST was charged. There is nothing to claim, and reverse charge may instead require you to account for output tax on imported services.
- Missing the pre-registration claim window. GST incurred before registration can often be recovered, broadly on goods acquired within six months of registration and still held, and on services received within six months.
Practical examples
A design agency buys a company car. It pays SGD 180,000 including GST for a saloon used by its creative director for client meetings. None of that GST is claimable, nor the GST on petrol, servicing or motor insurance. Had it bought a commercial van instead, the full input tax would have been claimable.
A logistics firm insures its warehouse staff. It takes out work injury compensation cover as required under the Work Injury Compensation Act, and separately buys a group outpatient plan as a benefit. Input tax on the work injury cover is claimable; input tax on the outpatient plan is blocked unless it falls within the work-environment or risk management exceptions.
A property company rents out two shophouse units and one apartment. Monthly exempt residential rental of SGD 6,000 is comfortably under SGD 40,000, but it represents 12% of total supplies. The 5% test fails, so de minimis is unavailable and the company must apportion residual input tax such as accounting fees and office overheads.
How a corporate secretary can help
GST is filed by the finance function, but the errors usually start further upstream, in how expenses are approved, whose name sits on an invoice, and whether the company keeps records it can produce three years later. A provider working across your secretarial, accounting and tax files sees those connections. Raffles Corporate Services assists with GST registration, periodic filing, input tax reviews before submission and responses to IRAS queries, alongside ACRA filings, statutory registers, bookkeeping, corporate tax and payroll support.
Requirements may change, so always check the latest guidance from ACRA, IRAS or MOM, or consult a professional adviser.
Frequently Asked Questions
How far back can I claim input tax I forgot to include?
Five years from the end of the relevant accounting period. Where the understated amount is within the limits IRAS specifies, you can adjust it in your next GST F5. Larger errors require a GST F7 to correct the affected period.
Can I claim GST on entertaining clients?
Yes. Business entertainment is not on the blocked list, so input tax on client meals and events is claimable where the expense is genuinely for business and you hold a valid tax invoice.
What if my supplier charged GST but is not GST-registered?
You cannot claim it. Charging GST without being registered is an offence, and the amount you paid is not input tax. Check the supplier on the IRAS register and ask for a corrected invoice.
Do I need the original paper tax invoice?
No. Electronic copies are acceptable provided they are complete, legible and retrievable, and records must be kept for at least five years.
Is GST on professional fees claimable?
Generally yes, where the fees relate to your taxable business activities. Company secretarial, accounting, audit and tax compliance fees are ordinary business expenses, subject to apportionment if you make exempt supplies.
Key takeaways
- Input tax is claimable only if you are GST-registered, the supply was made to you for business purposes, it supports taxable supplies, and you hold the correct document
- Motor cars and their running costs, club subscriptions, family benefits and most staff medical expenses are blocked under Regulations 26 and 27
- Medical costs obligatory under the Work Injury Compensation Act, a collective agreement, or work-environment risk management fall outside the block
- A full tax invoice is needed above SGD 1,000; a simplified tax invoice or qualifying receipt suffices at or below that
- Exempt supplies restrict your claim unless you stay within both de minimis limits
- Import GST is claimed on the import permit, not the overseas invoice, and claims can go back five years
If you would like to find out more about how Raffles Corporate Services can assist with your company’s compliance and corporate secretarial requirements, please get in touch with the team at [email protected].
Yours sincerely,
The editorial team at Raffles Corporate Services
Disclaimer: This does not constitute legal advice. If you require legal advice, please contact a lawyer.