Common Mistakes to Avoid While Filing GST in Singapore

Invalid Tax Invoice

It is incorrect to claim input tax on your purchases/expenses if you do not have a valid tax invoice (for purchases > $1000) or simplified tax invoice (for purchases ≤ $1000) containing all the required details.

When to charge 0% GST (zero-rate)

Your services are considered international services if they fall within the provisions under Section 21(3) of the GST Act. International services are zero-rated (i.e. GST is charged at 0%). Depending on the nature of service, you may also need to determine the belonging status of your customer (i.e. whether your customer is a local person or an overseas person) before zero-rating your supply of services.

You can charge GST at 0% for your supply of goods when you are certain that at the point of supply (based on the time of supply for exports) :

• The goods supplied will be exported or have been exported; and
• You have the required documents to support zero-rating.

Gifts

Goods that you give away free are treated as a supply that you make to the recipient. Since the goods are given for free, you do not need to charge GST to the recipient. However, you may be required to account for output tax on the open market value (OMV) of the goods according to the GST treatment detailed at IRAS website.

Avoid any mistakes when you file for GST by consulting a GST services provider in Singapore.

Sale and Disposal of Business Assets

Business assets include old furniture, office equipment and non-residential property. Generally, you have to account for GST (i.e. output tax) when you:

• sell your business assets (including disposal of or transfer of asset to another party with consideration received); and
• dispose of, transfer or give away your business assets for free and these assets still have market value, unless exceptions apply.