Singapore legislation
Regulation 37
Regulation 37
Adjustment of input tax deducted
Subregulation 1
This regulation applies where a taxable person has deducted an amount of input tax which has been attributed to taxable supplies because the taxable person intended to use the goods or services in making either —
non-specified taxable supplies; or
both non-specified taxable supplies and exempt supplies,and during the relevant period and before that intention is fulfilled, the taxable person uses or forms an intention to use the goods or services concerned —
in making exempt supplies or both non-specified taxable supplies and exempt supplies, instead of non-specified taxable supplies only;
in making exempt supplies, instead of both non-specified taxable supplies and exempt supplies; or
in continuing to make both non-specified taxable supplies and exempt supplies, but reducing the proportion of non-specified taxable supplies to exempt supplies.
Subregulation 2
Except as the Comptroller otherwise allows, where this regulation applies, the taxable person shall on the return for the prescribed accounting period in which the use occurs or the intention is formed, as the case may be, account of an amount equal to the input tax which has ceased to be attributable to taxable supplies, in accordance with the method which he was required to use when the input tax was first attributed, and he shall repay the said amount to the Comptroller.
Subregulation 3
For the purposes of this regulation, any question as to the nature of any supply shall be determined in accordance with the provisions of the Act and any regulations or orders made thereunder in force at the time when the input tax was first attributed.
Subregulation 4
Subject to paragraph (5), paragraph (2) does not apply where the input tax deducted in respect of a supply of land made to a taxable person has ceased to be attributable to a taxable supply of land which the taxable person intended to make, because the taxable person uses or forms an intention to use the land for making —
both taxable supplies, and exempt supplies referred to in paragraph 2(c) of Part 1 of the Fourth Schedule to the Act; or
such exempt supplies.
Subregulation 5
Where any land is supplied to a taxable person with any building thereon which is used or to be used for making exempt supplies, the taxable person shall, for the purposes of paragraph (2), repay to the Comptroller input tax in respect of only the building in accordance with such method as the Comptroller may determine.
Subregulation 6
In this regulation, “relevant period” means —
where the prescribed accounting period during which the attribution of input tax referred to in paragraph (1) was determined ends before 1st January 2007, a period of 6 years commencing on the first day of that prescribed accounting period; or
where the prescribed accounting period during which the attribution of input tax referred to in paragraph (1) was determined ends on or after 1st January 2007, a period of 5 years commencing on the first day of that prescribed accounting period.