Claiming GST Incurred Before GST Registration/Incorporation

GST registered businesses may claim GST incurred before registering for GST and also before incorporation provided certain conditions are met.

Claiming GST Incurred Before GST Registration

Complete the Pre-registration GST: Checklist for Self-Review of Eligibility of Claim (1.13MB) to assess your eligibility to make a claim on GST incurred on business purchases made before your GST registration ("Pre-registration GST"). You do not need to submit the completed checklist to us but you must maintain it as part of your records.

This checklist also includes a calculator feature to help you compute the amount of Pre-registration GST claimable. If you are unfamiliar with the pre-registration GST rules, we strongly encourage you to use the calculator feature within the checklist to determine the amount of pre-registration GST claimable. 

For more information on the Pre-registration GST rules, refer to the e-Tax guide "GST: Pre-registration Claims on Goods and Services for Businesses Registered for GST on or after 1 July 2015" (e-Tax Guide, 389KB). 

Conditions for Claiming Pre-registration GST

Pre-registration GST Incurred on Goods

 

You must satisfy all of the following conditions:

  1. The goods are purchased or imported by your business for the purpose of making taxable supplies ( standard-rated supplies and zero-rated supplies);
  2. For goods acquired within 6 months before the date of your GST registration, the goods are still held by your business at GST registration; 

    GST incurred on your trading goods is not claimable if the goods have been sold prior to your GST registration date

  3. For goods acquired more than 6 months before the date of your GST registration, the goods have not been consumed (i.e. used) or supplied by your business before the date of your GST registration; and

    GST incurred on food and beverages consumed by your staff and hotel accommodation incurred by your staff before your GST registration are not claimable.

  4. The pre-registration GST claims are not disallowed under Regulation 26 and 27 of the GST (General) Regulations.

Pre-registration GST Incurred on Property Rental, Utilities and Services

 

You must satisfy all of the following conditions:

  1. The expenses are incurred by your business for the purpose of making taxable supplies ( standard-rated supplies and zero-rated supplies);
  2. The expenses are incurred by your business within 6 months before the date of your GST registration;
  3. The expenses are not directly attributable to supplies made by your business before the date of your GST registration; and 

    GST incurred on your office rental, utilities and maintenance services for your business premises are not directly attributable to supplies made before registration.

  4. The pre-registration GST claims are not disallowed under Regulations 26 and 27 of the GST (General) Regulations.

Apportionment of Pre-Registration GST

 

Pre-registration GST is allowable only to the extent that the goods or services acquired are used or to be used for taxable supplies made after GST registration. 

If some of the goods acquired within 6 months before your GST registration date have been sold, transferred or disposed of, you are required to apportion the GST incurred according to the actual units held at your registration date.

If the goods acquired by you more than 6 months before your GST registration date have been used to make supplies straddling your GST registration (i.e. supplies before and after GST registration) or have been partially consumed before your GST registration, you are required to apportion the GST incurred.

Similarly, if the services, property rental or utilities acquired by you are used to make supplies straddling your GST registration, you are required to apportion the GST incurred. Only the portion of GST that is attributable to the supplies made after registration is claimable.

For information on the various apportionment methods, refer to "GST: Pre-registration Claims on Goods and Services (For Businesses Registered for GST on or after 1 July 2015)" (e-Tax Guide, 389KB).

Claiming Pre-registration GST for businesses registered before 1 July 2015

This webpage provides the latest pre-registration GST rules. This includes rules which only apply to businesses registered for GST on or after 1 Jul 2015.

If you are registered for GST before 1 Jul 2015, refer to the conditions and checklist for claiming pre-registration GST in "GST: Pre-registration Claims on Goods and Services (for Businesses Registered for GST before 1 July 2015)" (e-Tax Guide, 361KB). 

Documents to Maintain to Claim Pre-registration GST

To claim Pre-registration GST incurred on goods, you are required to maintain a stock account showing:

  • quantities purchased;
  • quantities used in the making of other goods;
  • date of purchase; and
  • date and manner of subsequent disposal of both the quantities purchased and quantities used in the making of other goods

For services, you are required to maintain a list showing:

  • description of services purchased;
  • date of purchase; and
  • date of disposal of the service (if any)

In addition, you are required to support your claims with evidence such as tax invoices, import permits, payment evidence, etc.

Claiming GST Incurred Before Incorporation

You can claim the GST incurred on goods and services purchased by an individual on your company's behalf before its incorporation and GST registration provided that certain conditions are satisfied.

Example 4

example4

For your company to claim the GST incurred for such purchases:

  1. The purchases must have been intended for use by your company to make taxable supplies after GST registration. If so, the purchases by the individual would be treated as business purchases by your company.

    Mr. X incurred GST on legal fees in the course of incorporating your company. The GST incurred by Mr. X would be treated as GST incurred by the company if:

    1. Mr. X became a member, officer or employee of the incorporated company;
    2. Mr. X is reimbursed or received an undertaking to be reimbursed by the company for the full amount paid for the goods and services;
    3. Mr. X was not GST-registered at the time of the purchase; and
    4. The purchases were acquired for your company's business and are not used or to be used for any other purposes.
  2. The purchases (treated as purchases by the company) must satisfy all the conditions for claiming pre-registration GST.

To claim the GST incurred prior to the incorporation of your company, please write-in to IRAS for approval with your confirmation that all the above-mentioned conditions are satisfied. Upon approval, your company may claim the GST incurred in your first GST return.

Determining when GST is Incurred

The time at which GST is incurred is determined according to your supplier's time of supply.

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