Can a business use its own exchange rates to claim GST input tax on foreign currency purchases?
No. Businesses should generally use the Singapore Dollar (“SGD”) equivalent stated on the supplier’s tax invoice when claiming GST input tax on foreign currency purchases.
What should a business do if the SGD equivalent is missing from the tax invoice?
Where the supplier’s tax invoice does not state the SGD equivalent, the business should generally obtain an amended tax invoice reflecting the SGD amount before claiming input tax.
Why can’t businesses use in-house exchange rates for GST claims?
Using internally determined exchange rates may not satisfy GST invoicing requirements and could result in the GST input tax claim being disallowed.
Why is it important to review foreign currency tax invoices?
Businesses should ensure that foreign currency tax invoices contain the required SGD equivalent to support valid GST input tax claims and maintain GST compliance.
