Singapore legislation
Regulation 27
Regulation 27
Disallowance of input tax relating to motor car
Subregulation 1
Subject to paragraphs (2) to (8), input tax incurred by a taxable person on any of the following is excluded from any credit under sections 19 and 20 of the Act:
the supply or importation of a motor car;
the supply of goods or services to, or importation of goods by, the taxable person directly in connection with a motor car.
Subregulation 2
Where —
input tax is incurred by a taxable person on a supply or importation of a motor car;
the motor car is used or to be used by a connected person of the taxable person;
the provision of the use of the motor car by the taxable person to the connected person is not ancillary to any other supply made by the taxable person to the connected person; and
the connected person has reimbursed the taxable person for a part or the whole of the sum of —
the value of the supply or importation of the motor car; and
the input tax incurred by the taxable person in respect of that supply or importation, paragraph (1)(a) does not apply to the amount of input tax that is reimbursed by the connected person.
Subregulation 3
Paragraph (1)(a) does not apply to any input tax incurred by a taxable person on a supply or importation of a chauffeured private hire car, if —
the taxable person uses or intends to use the chauffeured private hire car to provide any chauffeur service in the course of a business of providing any chauffeur service carried on by the taxable person; and
where the taxable person is an individual — the taxable person also satisfies all the following conditions:
the taxable person is a sole proprietor of a sole proprietorship that is registered under the Business Names Registration Act 2014 to carry on a business of providing any chauffeur service;
the taxable person maintains a fleet of at least 3 chauffeured private hire cars;
where —
the taxable person personally provides any chauffeur service using any of the chauffeured private hire cars mentioned in sub‑paragraph (ii) — the taxable person employs at least 2 other individuals to provide any chauffeur service using any of those chauffeured private hire cars; or
the taxable person does not personally provide any chauffeur service using any of the chauffeured private hire cars mentioned in sub‑paragraph (ii) — the individual employs at least 3 other individuals to provide any chauffeur service using any of those chauffeured private hire cars.
Subregulation 4
Paragraph (1)(b) does not apply to any supply of goods or services to, or importation of goods by, an insurer directly in connection with a motor car of a person who contracted with the insurer for the insurance cover on that motor car, where the insurance cover commences on or after 1 January 2007.
Subregulation 5
Where —
an amount of input tax is incurred by a taxable person on a supply of goods or services to, or importation of goods by, the taxable person directly in connection with a motor car;
the goods or services that are supplied or imported are used by a connected person of the taxable person;
the provision of the use of the goods or services that are supplied to, or imported by, the taxable person to the connected person is not ancillary to any other supply made by the taxable person to the connected person; and
the connected person has reimbursed the taxable person for a part or the whole of the sum of —
the value of the supply of the goods or services or importation of goods; and
the input tax incurred on the value of that supply or importation,paragraph (1)(b) does not apply to the amount of input tax that is reimbursed by the connected person.
Subregulation 6
Paragraph (1)(b) does not apply to any input tax incurred by a taxable person on a supply of goods or services to, or importation of goods by, the taxable person directly in connection with a chauffeured private hire car, if the taxable person uses or intends to use the chauffeured private hire car to provide any chauffeur service in the course of a business of providing any chauffeur service carried on by the taxable person.
Subregulation 7
Paragraph (1)(b) does not apply to any input tax incurred by a taxable person (X) on a supply of any chauffeur service that is provided to X by another taxable person (Y) using a chauffeured private hire car, if Y carries on a business of providing any chauffeur service.
Subregulation 8
In this regulation, a person (A) is a connected person of another person (B) if A is determined to be connected to B in accordance with paragraph 3, read with paragraph 4, of the Third Schedule to the Act.