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Operating a business in Singapore, a land full of opportunities, requires a thorough understanding and adherence to the Goods and Services Tax (GST) system. This article provides a detailed guide on GST registration requirements, taxable scope, and compliance essentials, helping your business navigate tax challenges smoothly while ensuring compliance and sustainable growth.

Which Businesses Need to Register for GST?

The current GST rate in Singapore is 9%. Businesses registered for GST must charge 9% GST on all goods and services sold in Singapore unless they qualify for zero-rating or exemptions.

1. Mandatory Registration

A business must register for GST if it meets either of the following conditions:

• Retrospective Basis: If the taxable turnover exceeds SGD 1 million in a calendar year, the business must complete GST registration by January 30 of the following year, with the registration effective from March 1.
• Prospective Basis: If the taxable turnover is expected to exceed SGD 1 million in the next 12 months, the business must register within 30 days of making the forecast, with the registration taking effect on the 31st day after the forecast.

Latest Update (Announced on February 28, 2025) From July 1, 2025, businesses required to register for GST under the “prospective basis” will be granted a two-month grace period to start charging GST.

2. Voluntary Registration

Businesses with taxable turnover below SGD 1 million may opt for voluntary GST registration if they meet one of the following criteria:

• Primarily engaged in making taxable supplies.
• Primarily engaged in overseas supplies (e.g., transshipment of goods).
• Provide GST-exempt but internationally qualified financial services.
• Procure overseas services or import low-value goods without claiming input tax credits.

Voluntarily registered businesses must:

• Use GIRO for GST payments and refunds.
• Remain GST-registered for at least two years.
• Comply with all GST-registered business obligations.
• Start making taxable supplies within two years if not already doing so.
• From November 1, 2025, eligible businesses must comply with the GST InvoiceNow e-invoicing requirements.

Scope of GST Chargeability

A business can charge GST on products or services only if all the following conditions are met:

1. The supply takes place within Singapore.
2. The supply is classified as a taxable supply.
3. The supplier is a GST-registered business.
4. The supply is made in the course of business activities.

Seven Key Responsibilities After GST Registration

1. Charging and Remitting GST on Standard-Rated Supplies

Businesses must charge 9% GST on all standard-rated goods and services sold in Singapore and declare and remit the collected tax accordingly.

2. Filing GST Returns and Making Payments

• Filing GST Returns:
  • GST returns must be submitted via mytax.iras.gov.sg within one month after the end of each accounting period.
  • A “NIL” return must be submitted even if there were no transactions.
• Timely GST Payment:
  • Tax payments must be made before the due date.
  • If paid via GIRO, deductions occur 15 days after the due date.
• Penalties for Late or Non-Filing/Payment:
  • Failure to file GST returns may result in a fine of up to SGD 5,000 and six months of imprisonment.
  • Late payments incur a 5% penalty, with an additional 2% per month after 60 days (capped at 50%).

3. Maintaining Proper Business and Accounting Records

Businesses must retain business and accounting records for at least five years.

4. Displaying GST-Inclusive Prices

All goods and services must clearly indicate GST-inclusive prices. If both GST-inclusive and exclusive prices are displayed, the GST-inclusive price must be equally prominent.

Non-compliance may result in a fine of up to SGD 5,000.

5. Issuing GST Tax Invoices

• If the total supply amount (inclusive of GST) is ≤ SGD 1,000, a simplified tax invoice may be issued.
• If exceeding this amount, a full tax invoice must be provided, including the GST registration number.

6. Notifying IRAS of Business Information Changes

Any of the following business changes must be promptly reported to the Inland Revenue Authority of Singapore (IRAS):

• Change in GST mailing address
• Change in business structure or ownership
• Change in partnership details
• Establishment of a new partnership with the same partners

7. Settling GST Upon Deregistration

If a business deregisters from GST, it must calculate and settle GST based on the value of its business assets as of the final registration date (if exceeding SGD 10,000).

These assets include:

• Inventory
• Fixed assets
• Non-residential properties
• Imported goods

Ensuring GST Compliance for Your Business

Understanding Singapore’s GST registration and compliance requirements is crucial for maintaining smooth business operations. Businesses should assess their eligibility for GST registration and ensure full compliance post-registration to avoid legal and financial risks.

If you have any questions regarding GST registration or compliance, feel free to contact us! We are here to provide expert guidance and support your business’s success in Singapore!