IRAS Looking Into New GST Refund System For Tourists

by Mary Swire, Tax-News.com, Hong Kong

29 June 2009

The Inland Revenue Authority of Singapore (IRAS) has announced that it is looking into a new GST refund system for tourists.

In a letter issued by the IRAS on June 18, Director of Corporate Communications, Deanna Choo, announced:

"We are pleased to inform that IRAS is currently looking into a new refund system that automates the claim process which will offer tourists a hassle free and seamless shopping and refund experience. Tourists can look forward to using self-help kiosks for speedy refunds at the airports by the middle of next year."

"We would also like to take this opportunity to clarify that tourists cannot claim GST refunds on services nor goods that have been consumed in Singapore. For example, tourists cannot claim GST refunds on admission tickets for tourist attractions nor for purchases of goods which have already been unwrapped for use in Singapore."

"Tourists are required to present their goods with the invoices and the required GST refund application forms so as to facilitate the endorsement process by the Singapore Customs at the GST Refund Inspection Counters of the Changi Airport. Most of the refund application forms can be processed within 10 minutes."

The Tourist Refund Scheme is a voluntary scheme where retailers who choose to make GST refunds to tourists may either operate the refund scheme on their own or engage the services of a Central Refund agency.

According to Ms Choo's letter, the mode of refund is to be agreed between the tourist and the retailer at the time of purchase. Tourists who have bought the goods from retailers who operate the scheme on their own will usually receive the refund from the retailers by way of cheques at their preferred address within 3 months from the date the Singapore Customs endorsed the refund application form.

Tourists who have bought the goods from retailers affiliated to Global Refund or Premier Tax Free, the 2 Central Refund Agencies in Singapore, can proceed directly to the cash refund counters operated by these Central Refund agencies at Changi Airport to obtain their GST refunds in either cash, cheque or direct crediting to their credit card or bank account.

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