GST COMPLIANCE

INTRODUCTION

Good and Services Tax (GST) is also known as value-added tax. It is mandatory for a company to register for GST in Singapore if the turnover reaches more than S$ 1 million in 12 months.

In Singapore, the GST rate is 7%. It applies to most goods and services that are exchanged in Singapore. If it’s exported from the country, the rate is 0%. Upon registering for GST, the company needs to collect the tax. There are two ways to do it. Firstly, to include the tax into the price of the goods and services offered. Secondly, which is more commonly used, is to charge the customer. For example, if you are selling a book for $35, you charge the buyer $37.45. The additional $2.45 is the 7% GST.

GST is mandatory in these two scenarios: – In the yearly assessment, your business has more than S$1 million in revenue- You are planning and expecting for more than S$1 million of turnover in the next one year.

Check out with your accountant if you are unsure whether your company is required to register for GST.

Registration for GST has to be made within 30 days after your revenue exceeds S$1 million. If you fail to register within 30 days, penalties will be imposed by IRAS.

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HOW TO REGISTER FOR GST? 

Fill up GST F1 and F3 forms and. Include the paperwork as required in their checklist. The process takes about 10 days. Upon approval, you will receive your GST number, filing frequency, and filing due dates.

DE-REGISTRATION OF GST

You can de-register once your company’s revenue is less than S$1 million a year. To apply this, you need to submit supportive documents showing the revenue projections.

Exempted supplies:

Here is a list of items exempted from GST:
– Sale of unfurnished residential property
– Investment of precious metal
– Bitcoin or similar digital payment tokens
– Export of goods
– International flight tickets

FAQ


The current GST rate in Singapore is 7%


Yes and no. It depends on the company’s annual turnover. If it’s more than S$1 million, it’s mandatory for the company to register as a GST registered company with IRAS.

The following forms are to be submitted:

– GST F1 (Singapore Goods and Services registration form)
– GST F3 to include the details of all the partners
– Supporting documents

The process takes about 10 days. Upon approval, you will receive your GST number, your filing frequency, and filing due dates.

It depends on the financial year-end. For instance, if the financial quarter-end is March, June, September or December, the cycle of the accounting period is January-March, April-June, July-September, October-December.

It’s recommended to register early once you are expecting for more than $1 million of turnover. Once a company has more than $1 million of turnover, it has to be registered to IRAS within 30 days.

There will be a 5% late payment penalty if a company doesn’t register for GST within the timeframe. After the first note is issued, if the company still doesn’t make the payment, another 2% will be imposed for each month the tax is outstanding.