GST Refund in Singapore: Detailed Guide & Latest Conditions
Singapore 
Updated on January 24 
Verified by GLA Experts 
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Goods and Services Tax (GST) is a value-added tax levied on the sale of goods and services in Singapore. In some cases, individuals and businesses may be eligible for a GST refund from the Inland Revenue Authority of Singapore (IRAS).
This article will provide detailed instructions on tax refund cases, how to check tax refund, forms of tax refund and situations where tax refund is not granted.
1. Who can claim GST refund in Singapore?
To be eligible for GST refunds in Singapore, businesses need to have a Singapore GST registration number. Businesses can register for GST voluntarily or compulsorily depending on their annual turnover. Additionally, businesses can take advantage of support programs to manage their tax obligations more effectively.
GST refund may be applied to the following entities:
- Foreigners leave Singapore after their working period.
- The company ceased operations in Singapore.
- Organizations whose input GST exceeds output GST.
If you fall into one of the above categories, check carefully to see if you have any outstanding taxes to proceed with the tax refund process.
Note: IRAS will automatically refund tax if a tax credit is generated and the refund process takes place within 30 days of the tax credit being generated.
2. Methods of receiving tax refund in Singapore
Tax refund via GIRO
For personal tax, corporate tax, property tax, GST and withholding tax
If you paid your taxes with GIRO, the refund will be automatically transferred to your bank account within 7 days from when the tax credit is earned.
Tax Refund via PayNow
For personal income tax, property tax, stamp duty, corporate tax and GST
PayNow method helps you to receive tax refund quickly without registering for a GIRO account. The time to receive tax refund via PayNow is 7 days from the date the tax credit arises.
- For individuals: Link NRIC/FIN to bank account via online banking
- For businesses: Link UEN to a business bank account
If you sign up for PayNow after the tax credit has been issued, it may take up to 21 days to receive your refund.
Tax refund via telegraphic transfer
If you do not have a bank account in Singapore, you can claim your tax refund via telecommunication transfer by completing an online form.
Note:
- Refunds below SGD 100 will not be processed but retained for future tax offset.
- You are subject to bank transaction fees and exchange rate risk.
3. When is a GST refund in Singapore not made?
GST refunds in Singapore are an important process for businesses and individuals to get back the value-added tax (GST) they paid but did not need to pay. However, refunds are not always issued automatically or upon request. In some cases, the Inland Revenue Authority of Singapore (IRAS) will reject the GST refund or delay processing it. Below are the common reasons why GST refunds in Singapore are not issued.
GST Refund below SGD 100 via international bank transfer
If an individual or business requests a GST refund via international bank transfer (Telegraphic Transfer), but the refund amount is less than SGD 100, IRAS will not process the transaction but will retain the tax to offset against future tax liabilities.
Tax refund under SGD 15
If the refund amount is less than SGD 15, IRAS will not automatically refund it but will retain it to offset any future tax liabilities. However, if the taxpayer wishes to receive this amount, they can contact IRAS to request a refund.
There is no electronic tax refund method.
IRAS will not automatically process tax refunds if the taxpayer does not have a GIRO payment method setup or PayNow registration with NRIC/FIN/UEN. These are the two main methods IRAS uses to provide fast and efficient tax refunds. If there is no account linked to either of these methods, the tax will not be processed automatically.
Taxes or fines owed
If an individual or business still owes tax or is fined for a tax offence, IRAS will use the refunded tax amount to offset the amount owed. If the amount owed is greater than the refunded tax amount, the taxpayer will not receive any money.
Estimated tax paid in advance
If a business or individual has paid tax in advance in anticipation of a future tax assessment, IRAS may withhold this tax instead of refunding it immediately.
GST Return Not Filed
Businesses are required to file GST returns on a regular basis (monthly or quarterly). If one or more returns are missing, IRAS may withhold the GST refund until the business has completed filing all required returns.
Undergoing tax audit or investigation
When an individual or business is subject to a tax audit or investigation by IRAS for suspected tax offences, the tax refund process will be suspended. The tax refund will only resume once IRAS has confirmed that there is no issue of tax fraud or wrongdoing.
Not providing enough information to receive a refund
If IRAS requests additional information or supporting documents to verify the tax refund but the taxpayer fails to respond, the refund will not be issued.
Failure to respond to tax verification requests
If IRAS has sent a tax verification request but the business or individual does not respond within the required time, the refund will not be processed. This may occur when IRAS needs further information to confirm the validity of the refund.
The company has been dissolved.
If a company has been formally dissolved and is no longer legally existing in Singapore, IRAS will not refund the GST to the company. Instead, the remaining amount in the company’s tax account will be transferred to the Insolvency and Public Assets Administration Office (IPTO). Shareholders can contact IPTO to claim the remaining tax, but will be subject to a processing fee.
Individual has gone bankrupt
If an individual has filed for bankruptcy, the refund will not be paid directly to them but will be handed over by IRAS to the Public Assets Office (IPTO). Taxpayers can contact the Official Administrator for further details of their rights to the refund.
Refund from invalid source tax deduction
For Withholding TaxIf a business has overpaid but does not submit a refund request correctly, IRAS will not automatically process the refund. Businesses need to submit a refund request for consideration.
Claim for tax refund related to sold property
If a refund relating to a property tax refund arises after the owner has sold the property, IRAS will not automatically transfer the refund to the former owner. The former owner should proactively contact IRAS to request the refund within the prescribed time limit.
Other special cases
In addition to the above reasons, IRAS may refuse a refund in certain other exceptional cases where there are legal or accounting issues affecting the validity of the refund.
4. How does GLA support businesses in declaring GST refunds in Singapore?
GLA supports the company established in Singapore during the GST filing and refund process in Singapore, helping to ensure compliance with the Inland Revenue Authority of Singapore (IRAS) regulations and optimize the tax refund process, including:
- Get detailed advice on GST laws in Singapore, including regulations on GST registration, GST calculation, GST payment, input tax refund, etc.
- Support businesses in collecting and preparing necessary documents for GST tax declaration.
- Assist businesses in preparing the necessary documents to claim GST refund.
- Advice on methods of receiving tax refunds from the Singapore government.
- Consulting on registration instructions and using PayNow and GIRO to help Singaporean businesses conveniently receive money and pay taxes to the Government.
- Submit GST tax declaration to IRAS on behalf of the Enterprise.
- Update changes in GST laws and notify businesses.
- Ensure businesses always comply with the latest regulations on accounting tax in Singapore.
5. Frequently asked questions about GST refund in Singapore
Which businesses can claim GST refund?
Businesses registered for GST in Singapore can claim a refund if their input GST exceeds their output GST or if they fall under special circumstances such as ceasing operations.
How long does it take for IRAS to process a GST refund?
Normally, IRAS will issue a refund within 30 days of the tax credit being incurred, provided there are no issues with the application.
What are the methods of getting GST refund?
IRAS will refund via GIRO, PayNow-UEN/NRIC/FIN or Telegraphic Transfer if the business does not have a bank account in Singapore.
What happens if my bank account is closed?
If IRAS is unable to remit the refund, the amount will be retained as unclaimed monies. Businesses need to contact IRAS to claim it.
In what cases is automatic tax refund not available?
Refunds are not automatically issued if the business has outstanding taxes/penalties, has not filed a GST return, is under audit, or has not provided all required information, etc.
Highlights- GST Refund Conditions: Businesses need to have a GST registration number in Singapore and meet the conditions prescribed by IRAS, including cases where input tax is greater than output tax or the business ceases operations.
- Refund method: IRAS refunds via methods such as GIRO, PayNow or Telegraphic Transfer, depending on the status of the business's bank account.
- Processing time: GST refunds are usually made within 30 days of the tax credit being incurred, faster if the business is registered for GIRO or PayNow.
- Cases that are not eligible for automatic refund: Including businesses with tax credit below SGD 15, with outstanding tax obligations, under investigation or incomplete GST returns.
- Optimize tax refund process: Businesses should maintain transparent accounting records, use electronic payment methods and comply with the declaration process to ensure quick tax refunds, avoiding rejection or delays.
This article was published by GLA on 14/12/2016. Copyright and accompanying content are intellectual property of GLA. All rights reserved.
The guidance and content are for general information only and are not intended to provide specific guidance and advice on accounting, tax, legal or other professional advice. Readers should consult professional advisors on specific issues.
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