Does your company need to register for GST?

GST registration is compulsory when the turnover of your business is more than S$1 million in the past 12 months or when you are expecting that your turnover will exceed S$1 million in the next 12 months. It is your responsibility to continually assess whether you need to be registered for GST.

You need to apply to IRAS for GST registration within 30 days when your turnover exceeds S$1 million. Failure to register your business with IRAS within the stipulated time frame will result in penalties.

If you are statutorily not required to register your Company for GST, you may also voluntarily register for GST and this is subject to IRAS approval (based on the assessment that the company has plans to do significant sales that are taxable supplies). There are additional conditions to meet before IRAS will approve registration for GST on a voluntary basis. If you are registered for GST on a voluntary basis, you must remain registered for at least two years and continue to comply with the GST reg7ulations such as quarterly filing of GST returns and maintaining all your accounting records for at least five years after your business cessation.

What is a Taxable Supply?

Taxable supplies are supplies of goods or services made in Singapore that are not exempt supplies. A taxable supply can either be a standard rated (currently 7%) or zero-rated.

Zero-rated supplies of goods and services are subject to 0% GST. Exports of goods and the provision of international services are mainly zero-rated supplies. A GST registered entity that makes zero-rated supplies can claim the input tax paid on purchases.

Exempt supplies are required to charge GST, such as sale and lease of residential land; and financial services. Hence, the input tax incurred in making such exempt supplies will not be claimable.

Out of scope supplies refers to supplies that are outside the scope of the GST Act. In general, they are:

• Transfer of business as a going concern
• Private transactions
• Third country sales – refers to the sale of goods from a place outside Singapore to another place outside Singapore
• Sales made within Zero GST Warehouse

GST Registration

Two forms are required – GST F1 form and GST F3 form (in the case of a partnership) to be completed. Foreign registrants need to appoint a local agent who will act on its behalf and must include an application/authorisation letter, along with the application form.

The registration process takes approximately 3 weeks.

Two forms are required – GST F1 form and GST F3 form (in the case of a partnership) to be completed. Foreign registrants need to appoint a local agent who will act on its behalf and must include an application/authorisation letter, along with the application form.

The registration process takes approximately 3 weeks.

If you are only having zero-rated supplies or 90% of your total table supplies are zero-rated, you can apply for exemption from GST registration.

Are there any impediments if you are GST registered?

• Additional administration costs to ensure GST returns are submitted on time
• Penalties for non-compliance with GST rules and late tax payment of GST to IRAS
• Additional accounting costs for GST filing by professional accountant - as most business owners are not familiar with the GST rules.
• Significant resources and costs to be incurred if company is subject to GST audit by IRAS.

GST Services

At Easy2Incorporate, we offer various GST services to suit your company needs.

• check_circle_outlineGST Quarterly Returns $200/qtr
• check_circle_outline GST Reconciliation $200/qtr
• check_circle_outline GST Registration (Compulsary or Voluntary) $800
• check_circle_outline GST Deregistration $800

For other GST Compliance support services including managing IRAS GST Audit & Investigation, please contact us for a quote.