Singapore: Updates on GST claims for motor cars, related expenses
Relaxation of GST claims on purchase and related running expenses of a motor car
Relaxation of GST claims on purchase and related running expenses of a motor car
The goods and services tax (GST) legislation from 1 January 2023, has been amended to allow GST claims on both the purchase and related running expenses of a motor car for businesses that offer chauffeur service or cars for lease or hire.
Individuals or groups who wish to claim GST will need to meet the qualifying conditions, such as registering under the Business Names Registration Act 2014 and maintaining a fleet of at least three chauffeured private-hire cars and three chauffeurs (including the owner), to demonstrate that they run a service business. Such transport services are not confined to passengers but also extend to goods such as food and baggage.
KPMG observation
The relaxation of GST claims on the purchase and related running expenses of a motor car, including parking charges, is a welcome change after many years of appeal to the Inland Revenue Authority of Singapore. This has aptly addressed businesses’ concerns about rising business costs and cascading tax effects.
Read a February 2023 report [PDF 304 KB] prepared by the KPMG member firm in Singapore
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