On 3 August 2015, the Inland Revenue Authority of Singapore published the second edition of the e-Tax Guide - GST Guide on Attribution of Input Tax. The purpose of the guide is to explain how businesses should attribute input tax when making both GST-taxable and exempt supplies.
According to the guide, a taxpayer may only claim an input tax deduction if it is directly attributable to a taxable supply. However, a de minimis rule applies, whereby input tax may be fully claimed if:
- The total …