REITs and Registered Business Trusts - IRAS

GST concession for Real Estate Investment Trusts and qualifying Registered Business Trusts, and self-accounting of GST for property ... Home Taxes Goods&ServicesTax(GST) SpecificBusinessSectors REITsandRegisteredBusinessTrusts Advertising AerospaceandAviation AirandSeaContainers Auction Biomedical Bunkering CharitiesandNon-ProfitOrganisations Construction ConsultancyandProfessionalServices DigitalPaymentTokens e-Commerce Energy Finance GoldJewellery HotelandFood&Beverage LogisticsandFreightForwarding Manufacturing MarineandShipping MotorTrade Pawnbroking RealEstate REITsandRegisteredBusinessTrusts Retail Telecommunications Travel Onthispage: ConcessionforClaimingGSTIncurred Self-AccountingofGSTforPropertyPurchases FAQs RelatedContent ConcessionforClaimingGSTIncurredCurrently,theRealEstateInvestmentTrustsandqualifyingRegisteredBusinessTrustslistedonSingaporeExchange(i.e.S-REITsandqualifyingS-RBTs)aregrantedaconcessiontoclaimGSTonexpensesincurredfortheirbusinessandtheirSpecialPurpose Vehicles(SPVs).ThisGSTconcessionappliesregardlessofwhetherS-REITorS-RBTiseligibleforGSTregistration.Thequalifyingperiodoftheconcession is from17Feb2006to31Mar2020 .Pleaserefertothee-TaxGuide GST:ConcessionforREITSandQualifyingRegisteredBusinessTrustsListedinSingapore (PDF,962KB)fordetails.InBudget2015,theGovernmentannouncedafurtherenhancementontheGSTconcessiontoallowS-REITsandqualifyingS-RBTstoclaimGSTonexpensesincurredtosetupSPVsusedsolelytoraisefundsfortheS-REITsorqualifyingS-RBTs, wherethe SPVsdonotholdqualifyingassetsoftheS-REITsorqualifyingS-RBTs,directlyorindirectly.TheseS-REITsandqualifyingS-RBTswillalsobeallowedtoclaimGSTonthebusinessexpensesofsuchSPVs.TheenhancementisapplicabletoGSTincurred from1Apr2015to31Mar2020.TheenhancedconcessionisgrantedbasedonanadditionalconditionthatthefundsraisedbytheseSPVsmustbeon-lenttotheS-REITsorqualifyingS-RBTsandbeusedtofinancethebusinessactivitiesoftheS-REITsorqualifyingS-RBTs,asthecase maybe.Allotherdetailsandqualifyingcriteriaoutlinedintheabovee-TaxGuidewillcontinuetoapply.InBudget2019,theGovernmentannouncedtheextensionoftheaboveconcessiontill31Dec2025.Allconditionsfortheconcessionsremainthesame.GSTRegistrationbyWayofReverseChargeFrom1Jan2020,GSTwillbeleviedonBusiness-to-Businessimportedservicesbywayof reversecharge.AS-REITandqualifyingS-RBTwillbecomeliableforGSTregistrationunderthereversechargeregimeif:thetotalvalueofitsimportedservicesexceedsS$1millionfora12-monthperiodonretrospectiveorprospectivebasis;and theS-REITorqualifyingS-RBTisnotentitledtofullinputtaxcreditevenifitisGST-registered.Onceregistered,theS-REITorqualifyingS-RBTwillberequiredtoreportandaccountforGSTontheirimportedservicesintheGSTreturns.FormoreinformationonGSTregistrationunderthereversechargeregime,youmayrefertothee-TaxGuide,"GST:Taxing importedservicesbywayofreversecharge"(PDF,1202KB). Self-AccountingofGSTforPropertyPurchasesAGST-registeredS-REIToritsGST-registeredSPV(i.e.thebuyer)canself-accounttheGSTpayableforthepurchaseoffurnishedorunfurnishednon-residentialpropertiesfromanother GST-registeredperson(i.e.theseller).Consequently,thesellerneednotchargeandaccountforGSTonthepropertysale.Formoreinformation,pleaserefertoGST:Self-AccountingofGSTbyListedREITSandtheirSPVsforPropertyPurchases(PDF,533KB).ReportingofTransactionintheGSTReturnThebuyerandsellershouldreportthetransactionintheprescribedaccountingperiodinwhichittakesplace.Thebuyershould:Reporttheprice(excludingGST)ofthepropertyincludingthemovableassetsthereinasstandard-ratedsupplyandthecorrespondingGSTamountasoutputtax;andReporttheprice(excludingGST)ofthepropertyincludingthemovableassetsthereinastaxablepurchaseandthecorrespondingGSTamountasinputtaxclaim,subjecttoconditionsforclaiminginputtax.Thesellershould:Reporttheprice(excludingGST)ofthepropertyincludingthemovableassetsaspartofthevalueofthestandard-ratedsupplies. FAQs DoesaGST-registeredS-REITorqualifyingS-RBTneedtoincludethesuppliesmadebyitsSPVinitsGSTreturn? No,theGST-registeredS-REITorqualifyingS-RBTdoesnotneedtoincludethesuppliesmadebyitsSPVinitsGSTreturn.However,thesuppliesmadebyitsSPVshouldbeincludedwhenapplyingtheapportionformulatocomputetheamountofinputtaxclaimable. Isellanon-residentialpropertytoaGST-registeredS-REIToritsGST-registeredSPV(i.e.buyer).Thebuyerself-accountsfortheGSTonthepropertypurchase.DoIneedtoissueataxinvoiceforthesale? Yes,youneedtoissueataxinvoicetothebuyerforthesale.ItmustincludeaclausetotheeffectthattheoutputtaxshownontheinvoiceispayabletotheComptrollerofGSTbythebuyeroftheproperty(e.g."ThebuyerwillaccountforS$XXXoutputtaxonthissupplyofproperty(andmovableassets)").YoushouldissuetaxinvoicesaccordingtotheSale&Purchaseagreementwiththebuyerbutnotlaterthan30daysoftheearlierofdateofpaymentorlegaltransfer.Thesameinvoicingrequirementappliestoallsaleofproperty,regardlessofwhetherthebuyerisanS-REIT. Documents GST:ConcessionforREITSandQualifyingRegisteredBusinessTrustsListedinSingapore(PDF,962KB) Documents GST:Self-AccountingofGSTbyListedREITsandtheirSPVsforPropertyPurchases(PDF,533KB) Pages RealEstate