We refer to the letter “Query on GST refund for tourists” (ST Forum) on 5 Feb 2014. The writer asked about the correct procedure for retailers to process tourist refunds for GST.

Tourists can obtain GST refunds on goods they have purchased and are taking out of Singapore under the Tourist Refund Scheme (TRS). Retailers must verify that purchasers are indeed tourists before issuing them with tourist refund claim tickets. This should be done by checking their identities against their passports. The checks prevent an ineligible person from using another person’s foreign passport to fraudulently obtain tourist refund claim tickets and claim GST refunds. More information on TRS rules are found in IRAS’ e-Tax guide “GST: Guide for Retailers participating in Tourist Refund Scheme”.

In view of this, Mustafa was correct in not processing the GST refund claim since it could not establish the eligibility of the purchaser.

IRAS takes a serious view of retailers who flout TRS rules or abuse the scheme. We will not hesitate to terminate the TRS affiliation of retailers who are repeat offenders. Members of the public aware of retailers who do not comply with TRS rules can email us at [email protected].

We thank the writer for his feedback.