By Karun Reji, Chartered Accountant, BI-Outsource. General information, not tax or legal advice. Rules change: check the current position before you act.
Short answer: most GST F5 errors come from claiming input tax without a valid tax invoice, missing reverse charge or import GST, using the wrong exchange rate and posting in the wrong period. Reconcile your GST accounts to the F5 every quarter, and correct past errors in the next return or by voluntary disclosure, depending on the amount.
The 8 common errors
- Claiming input tax without a valid tax invoice, or on a simplified invoice above the allowed limit.
- Claiming GST on blocked expenses, such as certain motor car costs, club fees and medical expenses not obligatory under law.
- Missing reverse charge on imported services where it applies to your business.
- Import GST not claimed or wrongly claimed: claim only on permits in your company's name.
- Wrong exchange rate for foreign-currency invoices.
- Wrong period: GST is reported when the time of supply occurs, not when cash is received (unless on cash accounting).
- Zero-rated exports without evidence: keep export permits and shipping documents.
- Bad debt relief not claimed or claimed without meeting the conditions.
Quarterly routine
| Step | Check |
|---|---|
| 1 | GST output and input accounts tie to F5 boxes |
| 2 | All import permits matched to the ledger |
| 3 | Foreign-currency invoices at an accepted rate |
| 4 | Blocked input tax excluded |
| 5 | Zero-rated supplies supported by documents |
Correcting errors
IRAS allows small net errors to be corrected in the next GST return within set limits; larger errors are corrected through a voluntary disclosure. Prompt voluntary disclosure generally attracts lower or no penalties.
Need help? We prepare GST F5 returns every quarter. See outsourced accounting in Singapore.
