Claiming Back GST on Non-Residential Property Purchases in Singapore
Acquiring non-residential property in Singapore involves significant investment, including expenses such as stamp duty and agent’s fees. Fortunately, businesses can recover some of these costs by claiming the 9% Goods and Services Tax (GST) paid on the property purchase, provided certain conditions are met. If the property is used for business activities or as an income-generating investment (e.g., rental income), your business may qualify to claim this GST as input tax from the Inland Revenue Authority of Singapore (IRAS).
Eligible Non-Residential Properties for GST Refund
To qualify for a GST refund, the property must be used exclusively for business purposes and be directly linked to taxable supplies. Examples include properties used as business premises for the sale of GST-taxable goods or services, or those leased for rental income by GST-registered investment holding companies.
Eligible non-residential property types include:
- Commercial and industrial buildings
- Guesthouses and chalets
- Canteens in student residences
- Lower floors of shophouses approved for non-residential use
However, mixed-use properties—used for both business and private purposes—are only eligible for partial GST claims based on the business-use proportion. Residential properties such as serviced apartments, student hostels, and workers’ dormitories do not qualify for GST refunds.
How to Claim GST (Input Tax)
To claim input tax on a non-residential property purchase, your business must be GST-registered. Once registered, you must file the GST F5 form along with valid supporting documents, such as tax invoices, during your regular GST filing period. Note:
- Input tax must be claimed in the accounting period that corresponds to the invoice date.
- Input tax incurred before GST registration may still be claimable, subject to pre-registration GST rules.
Claiming Pre-Registration GST
If you acquired the property before your GST registration, you may still be able to claim input tax under pre-registration GST, depending on:
- Whether the property was purchased within six months before your registration, or
- If it was purchased more than six months prior.
Different rules apply depending on the timing and intended use of the property.
Understanding GST Audits
A GST audit is a review of your business’s financial records to ensure GST has been correctly accounted for in your filings. IRAS will notify you in advance and may request documentation such as:
- Sales and purchase listings
- Invoices
- Export documentation
Audits can take place via email, phone, letter, or on-site visits. For on-site audits, businesses should:
- Provide auditors with access to premises, documents, and employees
- Offer a suitable space for document review
- Cooperate fully and disclose any past errors or irregularities
The audit process typically lasts up to 12 months but may vary depending on complexity and responsiveness. If discrepancies are found, penalties of up to twice the amount of underpaid or over-claimed GST may apply. However, voluntary disclosure of errors can reduce these penalties, making pre-audit self-reviews highly beneficial.
How WLP Can Assist
WLP’s team of seasoned professionals can guide your business through every step of the GST process—from preparing and filing the GST F5 form to audit readiness. Should your company be selected for a GST audit, WLP will ensure all necessary documents are in place and that your business remains compliant. Whether you need support with GST filing or comprehensive tax planning, WLP offers tailored solutions to meet your business needs. Get in touch with us today to learn more.