What Is Done During a Singapore GTO Audit?

If your company is selected for a Goods and Services Tax (GST) audit by the Goods and Services Tax Office (GTO) in Singapore, it’s important to understand what to expect — and what’s expected of you.

GTO audits are not just about catching errors. They’re about ensuring that your business is following GST regulations set by IRAS, and that your tax filings reflect your actual business activities.

So, what exactly happens during a GTO audit, and how can SME owners in Singapore prepare for one? Let’s break it down clearly.

What Is the GTO?

The Goods and Services Tax Office (GTO) is a unit under the Inland Revenue Authority of Singapore (IRAS). Its job is to conduct audits and investigations related to GST compliance.

Businesses are usually selected for audit based on:

• Risk indicators (e.g. inconsistent filings)
  
• Industry profiling
  
• Random selection
  
• Past errors or voluntary disclosures
  

If selected, IRAS will contact your business to schedule a review. This may be done on-site or off-site, depending on the scope of the audit.

What Happens During a GTO Audit?

1. Initial Notification

IRAS will notify you that your business has been selected for a GST audit. The letter typically outlines:

• The scope of the audit (what periods are being reviewed)
  
• What documents are required
  
• When and how the review will be carried out
  

You’ll be given a reasonable period to prepare.

2. Document Review

Auditors will examine your records to ensure that:

• GST has been correctly charged on standard-rated supplies
  
• Input tax claims are valid and supported by proper documentation
  
• Exempt and zero-rated supplies are treated correctly
  
• Filing timelines and reporting periods are accurate
  

You’ll typically need to submit:

• GST returns (Form F5)
  
• Tax invoices and receipts
  
• Sales and purchase ledgers
  
• Contracts and agreements
  
• Bank statements and payment records
  

3. Business Operations Review

In some cases, auditors may ask about your business structure, revenue sources, or internal processes. This helps them understand the context behind the figures filed in your GST returns.

They may also assess whether your company:

• Has proper record-keeping practices
  
• Applies GST rules consistently
  
• Understands key exemptions and special schemes (e.g. Major Exporter Scheme)
  

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4. Discussion of Findings

Once the audit is complete, IRAS will:

• Share any discrepancies found
  
• Invite clarifications or supporting evidence
  
• Propose adjustments (if required)
  

If there are errors, your business may:

• Be asked to file adjustments or additional returns
  
• Incur penalties for serious non-compliance
  
• Receive reminders or advice for minor mistakes
  

If the audit finds no issues, you’ll receive written confirmation — and peace of mind.

How Long Does a GTO Audit Take?

It depends on the complexity of your business and the quality of your records. A simple review may take a few weeks, while more detailed investigations can stretch longer.

Timely responses, organised documentation, and clear communication help speed up the process.

How Can SMEs Prepare for a GTO Audit?

Here’s how business owners can stay ready — even before being selected:

• Keep accurate and complete GST records for at least five years
  
• Ensure that tax invoices meet IRAS format requirements
  
• Regularly review how GST is applied across services, exports, and exempt supplies
  
• Reconcile GST returns with accounting records
  
• Maintain internal checks for common GST errors (e.g. double claims, missed tax on intercompany billing)

Summary

A GTO audit isn’t something to fear — it’s a routine part of running a GST-registered business in Singapore. That said, the audit process is detailed, and errors can lead to financial or reputational consequences.

Good documentation, accurate filings, and a solid grasp of GST rules make all the difference. For many SMEs, this comes down to having the right systems and internal governance in place — not just when the auditors show up, but all year round.

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