The Housing & Development Board (HDB) will be refunding the Goods and Services Tax (GST) that was wrongly charged on administrative fees for owners who rent out their HDB flats and bedrooms, as well as for the compulsory acquisition of flats due to infringements under the Housing and Development Act. As of 14 February 2024, HDB has ceased GST collections on these administrative fees.

2 From mid-March 2024, HDB will reach out to affected households who were wrongly charged GST on these fees in the last 5 years (from 1 January 2019 onwards), to arrange refunds. On average, the GST charged was about $1 for each application to rent out the flat or spare bedrooms, which is up to a period of 3 years, and about $15 for the compulsory acquisition of flats.

Administrative Fees for Renting Out of Flat or Bedroom, and for Compulsory Acquisition

3 HDB flats are primarily meant for owner-occupation. Nonetheless, eligible HDB flat owners can rent out their whole flat after meeting the minimum occupation period. Flat owners who own a 3-room or larger flat can also rent out their spare bedroom(s) at any point after key collection. Flat owners who rent out their flat or spare bedroom(s) must apply to HDB and pay an administrative fee (previously $20 and $10 respectively, inclusive of GST).

4 Under the Housing and Development Act, flat owners who commit infringements, such as the unauthorised renting out of their flat, may have their flat compulsorily acquired by HDB. Each case of compulsory acquisition attracts an administrative fee which depends on the complexity of the case and the administrative work involved. For these administrative fees, HDB had charged GST based on the prevailing GST rate. On average, the GST charged on the administrative fees for compulsory acquisition of flats was about $15.

5 As the above administrative fees have been determined to be regulatory in nature, they are non-taxable and GST should not have been charged on them. HDB apologises for the erroneous charging of the GST.

Refund of GST

6 We will reach out to affected households who had paid GST on these administrative fees in the last 5 years (from 1 January 2019 onwards), and whose records are available in our system. The refund amount will be inclusive of interest. From mid-March 2024, affected households will receive a notification via their Singpass app and hardcopy letter from HDB. They will be asked to provide some simple details through the dedicated e-Service on HDB InfoWEB via Singpass login to facilitate the GST refund. Households will be informed via email once the refund is credited to their bank accounts. Beyond the 5-year period, HDB will make proactive refunds where records are available.

Enquiries

7 HDB will reach out to the affected households by 30 June 2024, based on available records. Affected households who are not contacted by HDB by 30 June 2024 can submit a refund request via the HDB InfoWEB by 31 December 2024. Households who require more information can visit https://go.gov.sg/hdb-gst-refund and/or submit their feedback via the HDB InfoWEB or Mobile@HDB app¹.

8 Those who need further assistance, such as seniors without internet access, may call the HDB GST Refund hotline at 1800-866-6812 from Monday to Friday, 8am to 5pm. As we expect a high volume of queries during this period, we seek the public’s patience and understanding if a longer time is needed to respond to their enquiries. We would like to assure the public that we will attend to all enquiries as soon as we can.

9 Flat owners are reminded to provide their details only through the dedicated e-service on HDB InfoWEB. HDB will not request for personal information or banking details through phone calls, SMS, social media and within the content of emails. Flat owners and members of the public are advised to be vigilant against scam attempts.

Revision of Administrative Fees to Exclude GST

10 With immediate effect, HDB has ceased the charging of GST on the administrative fees for renting out of whole flat and spare bedrooms, as well as for the compulsory acquisition of flats. The administrative fees for renting out of flat/ bedroom(s), previously $20 and $10 respectively, have been revised accordingly to $18 and $9. Similarly, HDB has also ceased the charging of GST on the administrative fee for compulsory acquisition of flats, which will continue to vary depending on the complexity of each case.

¹ They can do so by selecting “HDB GST Refund” as the subject in the feedback form.

HDB to Refund Goods and Services Tax (GST) on Administrative Fees for Renting Out of Flat/Bedroom and Compulsory Acquisition