GST Goods and Services Tax Singapore (or “Singapore” for short) is an indirect tax levied on purchases made in Singapore and exported throughout the world. The Value Added Tax (VAT) terminology is used in place of GST in several countries to represent a tax system that is similar to GST but goes by a different name. The introduction of Goods and Services Tax in Singapore was a watershed moment in the country’s tax history, beginning on April 1, 1994. As of right now, the GST reporting rate is 7%.
To redirect revenue collection efforts away from direct taxes and toward indirect ones, the government of Singapore devised GST Registration Singapore. In part because of its progressive tax system, which is often considered as among the most appealing in the world, Singapore has been able to keep its GST and income tax rates stable and low for many years. Remember that the GST is a consumption tax and not a profit tax. For this reason, companies having quarterly sales of more than S$1 million are obligated to initiate regular GST Quarterly Filing.
How to Get Your Singapore Company GST Registered?
Remember that the Goods and Services Tax (GST) is not a tax on revenue but rather on consumption. Therefore, if a company earns more than S$1 million per year, it must sign up for GST and begin submitting GST reports on a regular basis.
It’s necessary to sign up in advance: The Goods and Services Tax (GST) registration is required.
- If your company has made more than S$1,000,000 in the last 12 months from the sale of taxable goods and services, you may safely forecast a growth in that figure during the coming 12 months.
- Voluntary GST registration is an option if you’d want to comply with the law.
If your audit firm in Singapore has annual sales of less than SGD 1,000,000 (around $600,000 USD), you do not have to register for GST.
Your company’s primary emphasis is “Zero-Rated Supplies,” sometimes known as exporting goods and services to countries that do not charge sales tax.
Registering with the Comptroller of GST to collect Goods and Services Tax is recommended but not required. Conversely, you need the approval of the comptroller in order to register for GST voluntarily. You must be registered with the Comptroller of GST for a full two years after receiving approval.
If your company is not registered to collect gst filing Singapore, you will not be able to get a refund on any purchases made in Singapore for business purposes.
Fee Guideline for GST Filing Services
For GST Filing Services, please refer to the following price schedule as a general reference. Please get in touch for a more detailed conversation and a more precise quote.
| Voluntary Registration for GST | $400 |
| Compulsory Registration for GST | $500 |
| Applying for exemption from GST | $500 |
| Quarterly GST Submission | From $250 |
| Assist in IRAS audits & investigations | From $300 |
| Cancellation of GST Registration | $300 |
GST Registration
In Singapore, the Goods and Services Tax (GST) is a sort of consumption tax levied on practically all sales of goods and services. According to IRAS, registering for GST is either optional or required. If your company’s annual revenue is less than $1,000,000, you may register for GST on a voluntary basis. However, if annual revenue hits $1 million, a company must register for GST. Once you’ve signed up, the Singaporean government will look to you as a GST collector.
Once you’ve signed up for GST, you’ll have to start charging and collecting GST at the current rate (currently 7%). This Goods and Services Tax (GST) that you charge and collect (on behalf of IRAS) is output tax, and it must be remitted to IRAS on a regular basis (often quarterly). The Goods and Services Tax (GST) paid on purchases and other company costs is known as input tax. In contrast, businesses may recoup input tax provided certain criteria are met.
Form 5 GST return must be submitted to IRAS (or e-filed via the IRAS website) on a quarterly basis by a firm that is registered for GST. On the GST return, the company must detail the taxes it collected from customers as well as the taxes it paid out. The GST payable to or refundable by IRAS is the difference between the total amount of tax collected and the total amount of tax paid. A company may be eligible to claim pre-registration Input Tax on its initial GST return provided it meets certain IRAS-defined requirements.
Once your business is GST registered, you must file GST returns electronically (every three months). If you are required to e-File and fail to do so, you might face serious consequences, including fines and jail time. A “NIL” GST return is nevertheless required to be filed within one month at the end of each calendar quarter, regardless of whether or not any transactions were actually processed.
Benefits Obtained Through Participation in the GST
- Businesses who are registered for GST may claim back the tax they pay on business purchases.
- If your GST payments exceed your GST collections, you will get a refund from the Inland Revenue Authority of Singapore (IRAS).
Methods for Getting Things Done
Every business in Singapore, from importers to retailers to wholesalers, must charge and collect the Goods and Services Tax (GST).
In particular, financial and real estate-related services are not included. The value-added tax, or GST, that is in existence in many countries does not apply to goods and services that are exported outside.