Can a company claim GST back from IRAS if customers do not pay their invoices?
Yes. GST-registered companies may claim bad debt relief from IRAS if they have already accounted for output GST on local sales but did not receive payment from their customers.
What is bad debt relief for GST?
Bad debt relief allows GST-registered businesses to recover the GST previously paid to IRAS on unpaid invoices.
Why can GST be claimed back on unpaid invoices?
GST-registered companies act as GST collecting agents for IRAS. Where output GST has been accounted for to IRAS but payment is not received from customers, the company may be eligible to claim back the GST amount from IRAS under the bad debt relief rules.
