IRAS issues e-Tax Guide, “GST: Guide for Charities and Non-profit Organisations (2nd Edition)”

On By taxsgIn Goods and Services Tax

1 April 2015

On 26 March 2015, the Inland Revenue Authority of Singapore (IRAS) published an e-Tax Guide, “GST: Guide for Charities and Non-profit Organisations (2nd Edition)”.

A GST-registered charity or non-profit organisation (taxable person) may undertake various activities which can be business or non-business in nature. A taxable person is required to charge and account for GST (output tax) on his taxable supplies. He is entitled to claim the GST incurred on his expenses (input tax) for making taxable supplies in the course his business. He is however unable to claim the GST incurred in respect of his non-business activities.

The e-Tax Guide explains:

  • the application of GST on the activities carried out by charities and non-profit organisations, and
  • the distinction between business and non-business activities, the types of transactions for which GST is chargeable and the rules for claiming GST incurred on expenses.

The second edition was updated with the following:

  • Insertion of an additional paragraph on the GST treatment of charity dinners, concerts / shows and golf tournaments (paragraph 6.6.2(b))
  • Insertion of a new paragraph on property held by trustee (paragraph 9).

The previous edition was published on 31 December 2013.

For full details, please refer the e-Tax Guide on the IRAS website.

Source: This article was extracted from the Inland Revenue Authority of Singapore’s (IRAS) website. Visit http://www.iras.gov.sg/ for more information.