2024 GST Series – Getting your GST Input Tax Claims Right and Avoiding the Common Pitfalls

Description

About 3,000 GST-registered businesses are selected for audit annually, and the most common mistakes discovered are incorrect input tax claims. On average, more than $18,000 in GST and penalties are recovered yearly from each business due to such errors.

A good understanding of input tax recovery rules is crucial 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.

This practical workshop is designed to give you more clarity in the key areas of concern on the recovery of GST on purchases. Our highly experienced trainer will also share on the common input tax errors made by businesses and how you can avoid them.

Programme Outline

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
• Imported services and Imported Low Value Goods
• Prescribed Goods under Customer Accounting

Common Errors on Input Tax Claims

• Understanding the common errors, and avoid making them in your claims

Key Learning Points in Recent Tax Case

• GHY v. Comptroller of Goods and Services Tax : The GST Board of Review upheld a decision of the GST Comptroller denying the input tax claim of a taxpayer on its purchase of goods from a local supplier on the grounds that it failed to prove that goods were purchased and traded.

Practical examples and cases will be used to facilitate learning and understanding for the various sections.

What you will learn

By the end of this workshop, you will:

• Gain step by step guidance to understanding the conditions for your business to recover GST incurred on purchases correctly
• Know when to claim and when not to claim GST for your purchases
• Be updated on the GST rules on purchases: Input tax recovery conditions, deemed output tax, fringe benefits and business expenses
• Learn to avoid the common errors on input tax claims and the consequent penalties

Target Audience

• Accountants
• Tax Professionals
• Preparers of GST Returns
• Anyone who would want to get their GST Input Tax claims right and avoid unnecessary tax penalties

Expert Speaker

Catherine Chiang

Catherine is a Senior GST Consultant who has previously spent 6 years in the IRAS, handling GST and Income Tax audit and almost 10 years with Big Four international accounting firms, specialising in GST compliance and advisory work. During this period, she has accumulated extensive experience in performing GST prudential reviews, GST consultancy, GST compliance, GST audits and GST training for clients.

Catherine has a Bachelor of Accountancy (Honours) degree from the National University of Singapore. She is an Accredited Tax Advisor (GST) registered with the Singapore Chartered Tax Professionals and a member of the Institute of Singapore Chartered Accountants. Catherine is also an ACTA certified Trainer.