With the exception of residential properties, the sale and lease of all properties in Singapore are subject to GST. Anyone buying a commercial property will be required to pay the 7% GST on the purchase price. However, if the individual is the owner of a registered company, the GST amount paid on the purchase of a commercial property may be claimed back, as long as guidelines set out by the Inland Revenue Authority of Singapore (IRAS) are fulfilled.

According to the IRAS e-Tax Guide:

Generally, when you enter into a contract to sell a non-residential property which is your business asset, you will expect to make taxable supplies of the property within next 12 months. Hence, you have to include the selling price of the property in the computation of your taxable supplies. If the selling price and the value of any other taxable supplies derived from other business activities that you will be conducting in the 12-month period are expected to exceed $1 million, you have to register for GST. You have to apply for registration within 30 days from the date you confirm the supplies will be made. For sale and lease of properties, this date would be the date of contract.

In short, as a business owner, when you buy commercial property with GST, you can register for GST, and then claim back the GST amount you paid on the purchase. When you lease or sell commercial property, you will be able to add GST to the price, which increases the overall profit margin.

VentureHaven can assist you with Registering and Claiming GST

VentureHaven will you help you incorporate your company following the usual procedures, however, GST registration post incorporation will be required if the commercial property you’re purchasing comes with GST. The fee for GST registration is $295, and we will provide you the details for submission once your company incorporation is confirmed.

Please also note that once GST registration has been approved, your company must also submit GST return to IRAS on a quarterly basis.