Goods and Services Tax ("GST") in Singapore

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What is GST

GST is a broad-based tax on domestic consumption, it is also known as value added tax (VAT) in other jurisdictions. GST is charged to the end customer and the business selling the goods or services is responsible for charging and collecting the the tax from its customers as well as paying the tax to the IRAS, effectively, the business acts as a collection agent for IRAS. The tax is applied at the prevailing GST rate. The current rate in Singapore is 7%, although the Government has announced an intention to hike the rate to 9% in the near future.

There are certain services exemptions such as the provision of most financial services, supply of digital payment tokens, the sale and lease of residential properties and trading of investment precious metals.. GST is also levied on imported goods while export of goods and certain types of services provided to overseas clients are not charged GST.

Who is required to register for GST

GST can only be charged by GST registered businesses. Only businesses that exceed S$1 million in annual taxable turnover are required to be registered. However, companies with revenues below this threshold can voluntarily register as well.

The GST that a business collects from customers is called output tax. Conversely, GST paid on a business's purchases or paid to its suppliers is called input tax. A GST-registered business can claim credit for its GST input tax thereby only paying GST on the amount of value-add, which is calculated as the difference between its output and input tax. This allows companies to lower its cost by claiming credit on its input tax as output tax are eventually pass on to the end customer.

Benefits of using Sprout'sGST services

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GST registration

Why should a business voluntarily register for GST?

A business may wish to consider the following:

  • Turnover is near S$ 1 million: it takes away the burden of monitoring turnover constantly.
  • Cost and responsibilities of GST submission, including filing tax return monthly or quarterly
  • Significant purchases from suppliers who are GST-registered. The ability to claim input tax will improve profitability.
  • GST-registered customers will prefer the business to be GST-registered in order for the customers to be able to claim input tax.
  • However, if customers are not GST-registered, increasing selling price to include GST may make the business' products or services uncompetitive.
  • GST must be charged to customers. You can either markup your prices, absorb GST or something in between.
  • If you mark up your prices, you may lose customers due to price increase if you a B2C business or if you are selling to non-GST registered business.
  • If you are a B2B business and most of your clients are GST-registered, you can increase prices without losing customers as your customers can claim back the GST.
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WHAT YOU NEED TO KNOW ABOUT GST

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GST registered businesses must file a GST Form 5 tax return to IRAS on a monthly/quarterly basis. In the case of no GST transactions, the business must still file a nil return.
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In filing Form 5 tax return, companies must report both their input tax and output tax.
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If the output tax is greater than the input tax, company must pay the net amount to IRAS.
On the other hand, IRAS owes the company a refund if the input tax is greater than the output tax
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Companies must pay the tax to IRAS within 1 month after filing a Form 5 tax return.

Benefits/reasons of using Sprout's services

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Solution Focused

We consider your business model, shareholders dynamics, work visa status to provide a suitable solution

Easy Onboarding

Create an online account using Myinfo or your ID hassle-free without requiring document certification

Compliant Set-Up

We prepare and store your documents so that you are fully compliant with regulations. Get notified of new upcoming deadlines.
PRICING

GST service package

GST Registration

S$250
Unsure about how to register for GST for your company? We can help!
  • GST registration

GST Filing + Monthly Bookkeeping

S$2,200/yr
Save S$250
Sign up for our GST filing and Monthly Bookkeeping Bundle and save on your GST registration fee.
  • GST registration
  • GST filing
  • Monthly Bookkeeping (500 records annually)
  • XERO Setup and onboarding
  • XERO Standard subscription
  • Receiptbank subscription
  • Reconciliation with bank statements
  • Review by Chartered Accountant
  • Unaudited Financial Statement Compilation
  • Estimated Chargeable Income (ECI)
  • Corporate Tax Filing (Form C-S)
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What others say about us

“I just experienced possibly the best customer experience of all time. I found Sprout online while I was trying to register my company and it turned out to be a wise choice for me. They are available all means of digital channels and respond quite promptly. Thank you, Weng Leong and team, for the help and support. Great Job!! And if anyone of you is looking for corporate service or any such matter look no further.”
Nihar Ranjan
“It was a wonderful wonderful experience having been served by Sprout Asia. From being able to be contactable by phone and online there were also sound advice given. The transactions were really smooth and everything were done over the internet. Most of all the professionalism was remarkable. I honest rate Sprout Asia 5 stars if I can 6. Thanks Jackson.”
Roy Lai
“Highly recommended based on my personal experience. Weng and team were extremely supportive in helping me navigate through many issues that were new to me. Very responsive and helpful in every way. Working with them gives me the reassurance that someone always has my back. Thanks again!”
Ena Yoo
“Since we got in touch till Registration COMPLETED they are very prompt response and did a good job with a very reasonable cost in compare to others.
Thanks guys. It is just a start for long journey.”
Mohd Hassan

Frequently Asked Questions

Do I need to charge GST on my invoices?

If your company did not apply or did not get approval from the Inland Revenue Authority of Singapore (IRAS) for voluntary or mandatory GST, your company cannot charge GST on your customers.

Can I claim GST for my purchases incurred before I am GST-registered?

No, you cannot and must not claim any GST for purchases before the date of official registration for GST.

How long does it take to register for GST?

The Inland Revenue Authority of Singapore (IRAS) usually takes 10 working days to process your GST application.

Who is required and when is it required to register for GST?

Companies are only required to register for GST when its taxable revenue exceeds $1 million. However, if you are certain that your total taxable turnover for the next 12 months will not exceed $1 million because of specific circumstances(e.g. large-scale downsizing of business) and can substantiate this with documentation, you will not be required to register for GST.

I have received the GST approval from IRAS. How do I confirm if my company is already GST-registered or check the official GST registration date?

You can check the official GST registration date and whether a company is GST-registered via this link.

What is my GST number?

Your GST number is your company UEN number.


What are disallowed input tax claims?

Under Regulations 26 and 27 of the GST (General) Regulations, some expenses are disallowed to be claimed as input tax. Common expenses include: employee family benefits, costs and running expenses incurred on motor registered under the business' or individual's name, or hired for business or private use, club subscription fees, non-obligatory medical expenses and medical and accident insurance premiums incurred for your staff and any transaction involving betting, sweepstakes, lotteries, fruit machines or games of chance.