Singapore: IRAS Publishes Current Areas of GST Audit Focus

• IRAS’s “Current Areas of Audits” webpage sets out where GST enforcement is concentrated, notably an audit programme targeting GST-registered businesses making low-value GST refund claims to verify their legitimacy—alongside continued focus on missing trader fraud, non-residential property sales, and sole proprietors under-declaring supplies and output tax. [iras.gov.sg], [wlp.com.sg]
• Common errors flagged include dormant businesses claiming input tax without taxable supplies, claims unsupported by valid tax invoices or import permits, input tax on disallowed items (motor cars, medical, private/housing expenses), and zero-rated export supplies lacking proper export documentation—even where the business operates from home. [ey.com], [wlp.com.sg]
• In FY2024/25, IRAS completed over 2,800 GST audits, recovering roughly S$205 million including penalties. Incorrect returns can attract penalties up to twice the undercharged tax, fines, and imprisonment, so IRAS urges voluntary disclosure and strong GST governance to secure reduced penalties. [vatabout.com], [vatabout.com]

Sources: IRAS · EY · VATabout