GOODS AND SERVICES TAX (GST)
What is GST?
Goods and Services Tax (GST) is a tax levied on import of goods, and all taxable goods and services in Singapore. GST was introduced in 1994 to allow Singapore. All goods sold in Singapore or services rendered in Singapore will be taxable unless it is exempted from GST. Goods sold overseas or services rendered outside of Singapore may also be exempted from GST.
GST-registered business will charge GST on the goods and services that they provide. The GST-registered business will then account for the output tax to be paid to IRAS every quarterly. A GST-registered business is able to claim back the GST paid for business purchases or expenses depending on industries, if the supplier they purchased from is another GST-registered business.
How to determine if your company needs to be GST Registered?
As a business, you are required to register for GST when your taxable turnover for the past 4 quarters is more than $1million.
You may also voluntarily register for GST even if your taxable turnover does not reach $1million.
What are the benefits and cost of registering GST?
When you register the business for GST, you must take the following factors into consideration:
- You have to follow the responsibilities of a GST registered businesses
- Charge and account for GST on standard-rated supplies
- File GST returns on time every accounting period
- Paying the GST on time
- Keep proper records
- Display prices with GST
- Issue Tax invoices with GST Registration numbers
- Inform IRAS of change in business particulars
- If your suppliers are GST-registered, you will be able to claim back the GST paid to them.
- If your customers are not GST-registered, your business's gross profit may reduce if you maintain selling price of your goods before and after registration of GST. If you decide to increase the selling price of your goods, you may lose the sale of the goods.
- You may also benefit if your goods fall into the Zero-rated supplies where you will be able to claim for the GST paid when purchasing the goods.
What We Do?
- GST Application (Mandatory / Voluntary)
- Application for GST Exemption
- GST Deregistration
- GST calculator and ASK annual review
- Quarterly GST Deadline email reminder
- Preparation of GST Tax Report and F5 return
- General GST Schemes