When purchasing from GST-registered suppliers or importing goods into Singapore, GST input tax may have incurred. To recover the input tax, you need to satisfy the conditions for the claim. How do you know if you are eligible and what, when and how much to claim?
The most common mistakes discovered during a GST audit are incorrect input tax claims. Hence, a good understanding of input tax recovery rules is critical in delivering optimal GST recovery incurred on purchases, whilst mitigating the risk of penalties. With a clear understanding of these rules, you will know how to examine the conditions that determine when GST can be recovered and how to correctly post the accounting entries for purchases by applying the correct tax treatment for each transaction. Additionally, the recent implications of COVID-19 on claiming input tax will be addressed.
This practical workshop is designed specifically to give Accounting and Tax Professionals more clarity to the key areas of concern on the recovery of GST on purchases.
A Highlight of Key Areas:
The Fundamental Building Blocks
- Mechanics of GST
- Basic GST concepts
- Different types of supplies / purchases
- Standard-rated, zero-rated and exempt supplies
Input Tax Recovery Rules
- Conditions
- Purchase GST that cannot be claimed
When can GST be Claimed
- Time of claiming: Claiming input tax in the right accounting period
- Evidence needed to claim GST
- Tax invoice
- Simplified invoice
- Import permit
- Purchases by employees
Determining the Amount of GST to Claim
- De-minimis rule
- Attribution / apportionment
- The impact of partial exemption
Specific Expenses
- Gifts
- Fringe benefits
- Business entertainment
Common Errors on Input Tax Claims
- Understanding the common errors, and avoid making them in your claims
Recent Updates and Practical Input tax claim issues to consider during the COVID-19 period
Practical examples and cases will be used to facilitate learning and understanding for the various sections.