Can I claim GST on staff meals in Singapore?

Staff meals provided to all employees or reasonable overtime meal reimbursements may be claimable. However, entertainment-style meals for selected staff are generally not claimable.

Are birthday gifts or small rewards claimable for GST?

Small gifts below a $200 (amount exclusive of GST) may be claimable. You may be required to account for output tax on fringe benefits if you have claimed input tax on the acquisition of the fringe benefits.

Can I claim GST on staff benefits like gym memberships?

No, staff benefits such as gym subscriptions, club memberships or personal perks are considered non-deductible and GST cannot be claimed.

What are common non-claimable GST expenses in Singapore?

Common non-claimable GST expenses include staff benefits (personal perks, gifts above threshold), entertainment expenses, motor car expenses (unless exceptions apply), and expenses without valid tax invoices.

What Expenses Cannot Claim GST in Singapore? A Practical Guide for Businesses

1. Introduction

In Singapore, the Goods and Services Tax (GST) is a broad-based consumption tax charged on most supplies of goods and services. While GST-registered businesses are generally allowed to claim input tax credits on their purchases, not all expenses qualify.

This article answers a common question many business owners have: what expenses cannot claim GST in Singapore? Understanding these rules is crucial because wrongful claims can result in penalties, additional tax payments, and compliance issues with the Inland Revenue Authority of Singapore (IRAS).

We’ll break down the GST input tax claims Singapore rules, highlight categories of disallowed input tax Singapore, and provide practical examples to help you stay compliant.

2. Overview: How GST Input Tax Claims Work in Singapore

To claim GST input tax, a business must meet three key IRAS conditions:

The business is GST-registered.
The goods or services purchased are used for business purposes.
A valid tax invoice from a GST-registered supplier is available.

These are the general GST input tax claims Singapore rules. However, IRAS also specifies categories of GST disallowed input tax Singapore under Regulations 26 & 27 GST Singapore. These rules identify specific expenses where GST claim not allowed Singapore applies, even if the purchase is for the business.

3. Disallowed Input Tax Categories (Regulations 26 & 27)

3.1 Private Car Expenses (S-Plate Vehicles)

Many businesses ask: Why can’t I claim GST on private vehicle expenses Singapore?
The rule is clear: GST on S-plated passenger cars (fuel, repairs, road tax, insurance) is not claimable.

❌ Disallowed: Private cars registered under an individual or company’s S-plate.
✅ Allowed: Commercial vehicles such as Q-plated, Z-plated vehicles, vans, lorries, or buses used for business.

Keyword: Private car expenses GST claim Singapore.

3.2 Medical Expenses & Insurance Premiums

Another common query: Can I claim GST on medical expenses Singapore?
In general, input tax not claimable Singapore on medical expenses, medical insurance, and premiums. This includes the employees’ expenses on seeing the doctor, medication, MC.

Exception: If the medical benefit is mandatory under the Employment Act or Work Injury Compensation Act (e.g., statutory insurance coverage for certain employees), the GST may be claimable.

3.3 Club Subscriptions & Recreation Memberships

Businesses sometimes purchase golf, country club, or gym memberships for networking or staff recreation. However, IRAS views these as non-business expenses.

❌ GST claim not allowed Singapore for:

Golf and country club subscriptions
Fitness memberships (gyms, spas)
Social or recreation clubs

Keyword: Is club membership GST claimable in Singapore?

3.4 Benefits to Staff & Family Members

IRAS makes a distinction between collective staff welfare (e.g., staff meals for all employees) and personal perks.

❌ GST cannot claim on staff benefits Singapore such as: luxury gifts, exclusive entertainment, or selective perks.
❌ GST claim on benefits to staff family Singapore? No – benefits provided to relatives or dependents of employees are specifically disallowed.

3.5 Betting, Sweepstakes, Gambling Transactions

Expenditure related to gambling activities is completely disallowed.

Examples of input tax not claimable Singapore:

Lottery or sweepstakes tickets
Payments related to wagering or gambling events

4. Key GST Input Conditions & Documentation

4.1 General Conditions for Claiming GST

To avoid errors, businesses should check that:

They are GST-registered.
The expense is directly related to business activities.
A valid tax invoice with supplier GST details is retained.

4.2 Common Documentation Pitfalls

IRAS will disallow claims if documents are incomplete. Common issues include:

Receipts from non-GST registered suppliers.
Missing tax invoices (only a payment voucher or credit card slip provided).
Invoice addressed to the wrong party.

➡️ Without proper documentation, GST claim not allowed Singapore.

4.3 Employee-Incurred Expenses (Agent Rule)

When employees incur expenses on behalf of the company:

GST is claimable only if the invoice is issued in the company’s name.
If the invoice is in the employee’s personal name, it becomes input tax not claimable Singapore.

5. Sector Scenarios & Special Cases

5.1 Pre-Registration Expenses

Businesses may claim GST on some purchases made before GST registration (e.g., office furniture, inventory purchases, office rental). If the inventory has been sold or consumed before the registration, then you cannot claim anymore. Expenses like medical costs or private vehicle expenses remain disallowed input tax Singapore even if incurred pre-registration.

5.2 Capital Assets & Fixed Assets

Large items such as equipment, property, or renovations may involve special rules:

Apportionment required if the asset has both business and personal use.
For purely business assets, full claim is possible.

5.3 Entertainment Expenses & Mixed-Use Items

Some entertainment expenses can be claimed if they are strictly for business:

✅ Annual staff dinner open to all employees
✅ Client hospitality directly tied to sales or projects (you need to indicate who you entertained, including which company, what position)

But selective perks (e.g., executive-only retreats, family entertainment) fall under GST disallowed input tax Singapore.

6. Summary Table – What Expenses Cannot Claim GST in Singapore

Expense Category	GST Claim Allowed?	Notes/Exceptions
Private Car Expenses (S-plate)	❌ No	Allowed only for goods/commercial vehicles
Medical Expenses & Insurance	❌ No	Unless required by Employment Act
Club Memberships & Recreation	❌ No	Golf, gyms, country clubs
Staff Family Benefits	❌ No	Disallowed under Reg. 26/27
Gambling/Betting Transactions	❌ No	Wagering, sweepstakes, lotteries
Expenses w/o Valid Tax Invoice	❌ No	Must have supplier GST invoice
Mixed-Use Personal Expenses	❌ No/Partial	Claim only for business-use portion

7. Frequently Asked Questions (FAQ)

Q: Can I claim GST on medical expenses Singapore?
A: Generally no, unless coverage is compulsory under the Employment Act.

Q: Is club membership GST claimable in Singapore?
A: No. Memberships at golf, country, or social clubs are disallowed input tax Singapore.

Q: Why can’t I claim GST on private vehicle expenses Singapore?
A: Because IRAS deems S-plated passenger cars to be personal-use assets. Only goods/commercial vehicles are allowed.

Q: What are the main Regulations 26 27 GST Singapore rules?
A: They specifically block GST input tax on private cars, medical expenses, club memberships, staff family perks, and gambling-related costs.

Q: What happens if I mistakenly claim disallowed input tax Singapore?
A: You may need to repay the GST, with penalties and interest. Intentional wrongful claims can also trigger IRAS audits and penalties.

8. Conclusion

Complying with GST input tax claims Singapore rules requires careful attention to both general conditions and the specific categories of GST disallowed input tax Singapore.

By understanding what expenses cannot claim GST in Singapore – such as private car expenses, medical insurance, club memberships, and family-related perks – businesses can avoid penalties and IRAS audits.

✅ Key takeaway: Always check your invoices, ensure expenses are genuinely business-related, and when in doubt, consult the IRAS GST e-Tax Guide or seek professional advice.

👉 Need help with GST compliance? Contact us for tailored advice to safeguard your business against costly errors.