GST registration in Singapore
No matter if you are a business owner or customer, you would probably know what Goods and Services Tax (GST) is in Singapore. But for business owners specifically, the process of getting registered for GST will require a little more paperwork. For those who are unsure of how to get your business registered for GST, here’s a quick rundown on how you can do so.
What is GST?
For starters, GST is a consumption tax that is levied on the supply and import of goods and services in Singapore. It can be known as Value Added Tax (VAT) in other countries. Here, the 7% tax is applied to the selling price of goods and services provided by GST registered businesses.
GST is usually charged to the end customer and the business selling the good or service is responsible for collecting the GST and paying tax to IRAS.
Who needs to register for GST?
There are two types of registration – mandatory and voluntary. Local companies that exceed a certain threshold for their GST-applicable revenue are required by law to register for GST. Other companies that do not exceed this revenue are not required to do so but are still allowed to register voluntarily.
Mandatory registration applies to companies whose taxable turnover for the past 12 months exceeds $1 million or is expected to in the next 12 months. These companies are expected to register for GST within 30 days of such determination
On the other hand, companies with an annual taxable turnover that is less than $1 million are not expected to register for GST, but they can still do so if they want to. Should a company want to participate in this voluntary registration, the company’s director needs to complete two e-Learning courses – Registering for GST and Overview of GST, unless any of the below are true:
- The company director has had experience managing other existing GST-registered businesses
- The person who prepares the company’s GST is an Accredited Tax Advisor (ATA) or Accredited Tax Practitioner (ATP).
- The person who prepares the GST returns has completed the above e-Learning courses within the last two years.
IRAS may also impose other conditions for GST compliance, or even cancel the company’s registration if they fail to meet any of the conditions.
Exemption from GST
Certain companies can be exempted from mandatory GST registration if 90% of their company’s total revenue is from supplies that are not subjected to GST or if the company would have received a refund from the IRAS as a GST registered business.
However, do also note that exempt companies cannot claim the GST incurred on business purchases. If a business expects to receive a credit for the GST paid, then it must register for GST.
How to register for GST?
If you are looking to register for GST, you should submit your application using the myTax Portal and mail the completed original copy of the GIRO application form to 55 Newton Road Singapore 307987 after submitting your application online. Kindly ensure that all the documents submitted are complete and accurate. If you need to complete the e-Learning assignments for voluntary GST Registration, be sure to get this done before making your application.
Once your application is successful, you will receive a letter from IRAS with your company’s GST Registration number and the effective date of registration.
Why should you be registered for GST?
There are several benefits to being registered for GST – it adds legitimacy to your business and also helps to keep the cost of business operations and prices down. The GST that is incurred on purchases can also be claimed, which helps the business to recover costs.
If you need help with GST registration, our expert team is ready and available to help out whenever you need it.