1 Aim
Scope of this e-Tax Guide
1.1 This e-Tax Guide explains how a partially exempt business should attribute
its input tax and also clarifies when input tax may be considered to be
“directly attributable” to a supply.
Who should read this e-Tax Guide?
1.2 You should read this e-Tax Guide if you are GST-registered and make both
taxable and exempt supplies1
.
2 At a glance
2.1 Input tax is claimable if it is directly attributable to the making of taxable
supplies. If you make both taxable and exempt supplies, you would not be
allowed to claim input tax attributable to the exempt supplies made unless
the De Minimis Rule is satisfied.
2.2 A partially exempt business which does not satisfy the De Minimis Rule will
have to claim input tax as follows:
(a) Input tax directly attributable to the making of taxable supplies will be
claimable;
(b) Input tax directly attributable to exempt supplies is not claimable unless
the exempt supplies fall within the list in Regulation 33 and that conditions
in Regulation 35 can be satisfied; and
(c) Residual input tax to be apportioned by an apportionment formula2.
You are encouraged to use the Partial Exemption Input Tax Recovery
Calculator to determine the amount of input tax claimable. You are not
required to submit the calculator to us but you need to maintain it as part of
your records.
Source: gov.sg
