Accounting & Bookkeeping

Claiming input tax in Singapore


GST was implemented in countries to eliminate repetitive taxes that are paid multiple time, both on the time of their purchase and sales, by the taxpayers. The facility of ‘Input Credit claim’ was provided by the government of many countries, including Singapore, to claim back their money.


What is ‘Input Credit’?

At the time of payment of tax, the producers can claim tax reductions on output for them, that they have already paid while generating inputs. In other words, the already paid tax while making purchases of any goods or services can be claimed back, if it is incurring again on the final output. For instance, if you are a producer, who made purchases worth $1000, incurring tax up to $150, then this $150 can be claimed back while paying annual taxes as it is already paid to the supplier. However, this claim can only be made if your business is registered under the GST Act.

Conditions To Claim Input Tax In Singapore

Claiming input tax in Singapore 800x500-01 (1)

1. Have invoice in Singapore Dollars:

In order to claim the input credit, your invoice must be in Singapore Dollars (SGD). Invoice in any other currency will not help you grant any claim.

2. Have words as a tax invoice:

Tax invoices are documents that a seller provides to its customer including all the taxes. Under the GST Act, a seller is bound to create and give invoices that carry all the necessary information, to its customers. Having detailed invoice records will help you with all the necessary data you will need for claiming a return.

3. Have GST rates:

In Singapore, the GST is charged at the rate of 7. All the invoices must be covered with the charge of GST and its conditions. Providing valid tax invoices must be addressed to the customers. The business should also receive tax invoices from all its suppliers.

4. Have total account payable:

All the due goods and services, that have been received but yet to be paid cannot be claimed under the return conditions. So, you are bind to maintain all the account payable records and disclose them at the time of claiming returns.

5. Have customer names and addresses:

In order to claim input tax return, all your supplier must be GST compliant and should already pay the taxes you paid to them while making purchases, to get your returns. Then, in that case, you need to have maintained all the records of your suppliers as well as the customers.

The Inland Revenue Authority of Singapore(IRAS) implements and regulates these conditions that are needed to claim input tax returns. However, you need to keep records of the invoices in order to claim GST.
The above-mentioned conditions are not required for simplified tax invoices.