| Item | Can I claim input tax? |
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Expenses incurred by employees on behalf of the company E.g. Expenses incurred for making business calls using employee's personal mobile phone | - Subject to conditions for input tax claim, such claims are allowed if you can prove that the employee is acting as an agent of the taxable person (i.e. the business) in receiving the supply of goods or services.
- For example, evidence of reimbursements made to the employee and recognising the bills as business expenses in your accounts etc.
- You need to segregate the business expenses from the private expenses. GST incurred for private expenses is not claimable.
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Entertainment expenses | - Subject to conditions for input tax claim, these claims are allowed if you have kept the supporting tax invoice addressed to you or the simplified tax invoice if the purchase value (including GST) is not more than $1,000.
- From 1 Feb 2014, if you have received a receipt which contains all the information required in a simplified tax invoice, you can use it to claim the input tax incurred for purchases exceeding $1,000 (including GST). You must also keep alternative documentary payment evidence and information on entertainment details (such as name of person entertained, purpose of entertainment, person incurring the expenses, etc.) to support your claim.
- This administrative concession is applicable only to expenses on food and drinks. In the event that an expense comprises of items other than food and drinks (e.g. rental of yacht), a proper tax invoice is still required to support the full claim.
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Staff medical expenses | - Input tax claims are disallowed under Regulation 26 of the GST (General) Regulations.
- However, subject to conditions for input tax claim, these claims are allowed if the medical expenses (e.g. pre-employment and annual health screening expenses) are obligatory under the Work Injury Compensation Act (WICA) or under any collective agreement under the Industrial Relations Act.
- To determine if the medical expenses are obligatory under WICA, please visit the Ministry of Manpower (MOM) webpage on WICA or contact MOM at +65 6438 5122.
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Medical and accident insurance premiums for your staff | - Input tax claims are disallowed under Regulation 26 of the GST (General) Regulations.
- However, subject to conditions for input tax claim, you are allowed the claim if such insurance or the payment of compensation is obligatory under the Work Injury Compensation Act (WICA) or under any collective agreement under the Industrial Relations Act.
- To determine if the insurance is obligatory under WICA, please visit the Ministry of Manpower (MOM) webpage on WICA, contact MOM at +65 6438 5122 or contact your insurance agent.
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Cost and running expenses of motor vehicles
E.g. Cost incurred for purchase of car, lorry and motorcycle E.g. Running expenses such as petrol and parking fees | Motor cars registered under the business's or individual's name, or hired for business or private use - Input tax claims are disallowed under Regulation 27 of the GST (General) Regulations.
Other motor vehicles (e.g. lorry, van, motorcycle) - Subject to conditions for input tax claims, input tax claims are allowed on motor vehicles that do not fall under the definition of a 'motor car' (i.e. constructed or adapted for the carriage of not more than seven passengers excluding the driver, and the weight of which unladen does not exceed 3,000 kilograms).
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Purchase of goods that you give away for free to customers, suppliers, staff etc. E.g. Gifts, samples and lucky draw prizes | - Input tax claims are allowed, subject to conditions for input tax claim.
- However, you may be required to account for output tax on the open market value (OMV) of the goods if its cost exceeds $200. Refer to Gift and Sample for more information.
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Club subscription fees charged by sports and recreation clubs E.g. Joining fee, subscription fee, membership fee and transfer fee | Input tax claims are disallowed under Regulation 26 of the GST (General) Regulations. |
Expenses for use of club facilities E.g. Green fees, buggy fees, rental of golf bag locker and dining at club restaurants | Input tax claims are allowed, subject to conditions for input tax claim. |
Family benefits for staff E.g. School fees for children of your expatriate staff | Input tax claims are disallowed under Regulation 26 of the GST (General) Regulations. |
| General insurance for the business | - Input tax claims are allowed on general insurance expenses (E.g. fire insurance, burglary insurance, machinery risks insurance, trade cargo insurance), subject to conditions for input tax claim.
- As an administrative concession, input tax can also be claimed on public liability insurance. However, this does not apply if the premiums relating to the insurance coverage of medical costs for third parties can be separately identified. You can only claim GST incurred on that part of the premiums not relating to the coverage of medical costs.
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GST/VAT incurred for purchases made overseas E.g. GST charged to you under the Australian tax jurisdiction | Input tax claims are disallowed because the GST/VAT was paid to a party outside of Singapore tax jurisdiction. |
| Properties purchased by non-legal entities | To claim input tax* on properties (both movable and immovable properties and intellectual properties) acquired through a bare trustee, the GST-registered non-legal entity must keep the following: - Tax invoice addressed to the bare trustee; and
- Documents (e.g. trust deed) or records showing that the purchase is made by the bare trustee on behalf of the GST-registered non-legal entity.
*subject to conditions for input tax claim
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