Goods and Services Tax ("GST")
GST is an indirect tax charged on the supply of goods and services made in Singapore and on the importation of goods into Singapore. The current rate is 7%.
What Goods And Services Are Subject To GST?
In general, you can assume that all goods and services are taxable. However, some specific items are exempt. These include financial services and the sale or lease of residential property.
When Do I Pay GST?
You have to pay GST when you buy goods or services from GST-registered businesses and when you import goods into Singapore.
When Do I Collect GST?
You must register with the Comptroller of GST in order to collect GST.
When Is It Compulsory To Register?
Your business must be registered to collect GST if your annual turnover exceeds or is likely to exceed S$1 million from the sale of taxable goods and services. You can apply for exemption only if most of your goods or services are exported or supplied internationally.
Can I Choose To Register?
You can apply to the Comptroller of GST to collect GST voluntarily. Approval for voluntary registration is at the discretion of the Comptroller. Once approval is given, you must remain registered for at least two years.
Why Should I Register?
Most businesses register for GST to claim back the GST incurred on their business purchases.
- When GST paid exceeds GST collected, the difference can be claimed from IRAS as a GST refund.
- When GST collected exceeds GST paid, you have to pay the difference to IRAS.
When GST rate(s) increase, it may make business sense to register voluntarily to collect GST in order to claim back GST incurred on business purchases.
How Do I Charge GST And Claim Refunds?
When to charge GST and how to claim for refunds can be rather technical and complex, and One Source will assist and advise you on how to charge GST and how to claim a refund.
What Paperwork Must I Take Care Of?
You are required to maintain your business records for all GST-related transactions for at least five years for periods on or after 1 January 2007. Records include tax invoices, receipts and credit notes.
How Do I File My GST Returns?
The standard procedure is to file GST returns quarterly. You need to file your GST returns online (e-Filing) using myTaxPortal. You should always file your GST returns on time to avoid penalty fees.
When Do I Pay The GST I Have Collected To IRAS?
You must pay the net GST not later than the last day on which you are required to file your return.
Can I De-Register Myself From The GST System?
- You can de-register your business from collecting GST if:
- the annual turnover of your taxable supplies in the next 12 months falls below S$1 million; or
- you are no longer making taxable supplies; or
- your business has ceased; or
- your business is transferred as a whole to another person.
If you have voluntarily registered to collect GST, you cannot de-register your business in the first two years after registration, unless you have stopped making taxable supplies or ceased business.