GOODS & SERVICES TAXATION

How GST Works in Singapore

Goods and Services Tax or GST is a broad-based consumption tax levied on the import of goods (collected by Singapore Customs), as well as nearly all supplies of goods and services in Singapore. In other countries, GST is known as the Value-Added Tax or VAT.

GST exemptions apply to the provision of most financial services, the sale and lease of residential properties, and the importation and local supply of investment precious metals. Goods that are exported and international services are zero-rated.

Taxable and Non-Taxable Goods and Services

The table below lists the categories and types of taxable and non-taxable supplies.

  Taxable Supplies  Non-Taxable Supplies   
 Standard-Rated Supplies(7% GST) Zero-Rated Supplies(0% GST) Exempt Supplies(GST is not applicable) Out-of-Scope Supplies(GST is not applicable)  
Goods Most local sales fall under this category.E.g. sale of TV set in a Singapore retail shop Export of goodsE.g. sale of laptop to overseas customer where the laptop is shipped to an overseas address Sale and rental of unfurnished residential property Importation and local supply of investment precious metalsSale where goods are delivered from overseas to another place overseas Private transactionsSee Out-of-scope supplies for more information. 
ServicesMost local provision of services fall under this category.E.g. provision of spa services to a  customer in SingaporeServices that are classified as international servicesE.g. air ticket from Singapore to Thailand (international transportation service) Financial servicesE.g. issue of a debt security 

Businesses Required to Register for GST

As a business, you must register for GST when:

  • Your taxable turnover for the past 12 months ending Mar, Jun, Sep or Dec (referred to as "quarter") is more than $1 million; or
  • You are making or intend to make taxable supplies and you can reasonably expect your taxable turnover in the next 12 months to be more than $1 million (e.g signing of a sales contract or business agreement).

If your business does not exceed $1 million in taxable turnover, you may still choose to voluntarily register for GST after careful consideration.

Charging and Collecting GST

Once you have registered for GST, you must charge GST on your supplies at the prevailing rate. This GST that is charged and collected is known as output tax. Output tax must be paid to IRAS.

The GST that you incur on business purchases and expenses (including import of goods) is known asinput tax. If your business satisfies the  conditions for claiming input tax, you can claim the input tax on your business purchases and expenses.

This input tax credit mechanism ensures that only the value added is taxed at each stage of a supply chain.

Paying Output Tax and Claiming Input Tax Credits

As a GST-registered business:

  1. You must submit your GST return to IRAS one month after the end of each prescribed accounting period. This is usually done on a quarterly basis.
  2. You should report both your output tax and input tax in your GST return.
  3. The difference between output tax and input tax is the net GST payable to IRAS or refunded by IRAS.

At the GA Group, we provide you with guidance and assistance services on the, GST calculation, GST form completion formalities and monthly/quarterly GST returns to IRAS. We will strive to make your GST Singapore registration process simple and convenient.

Please feel free to contact us at +65 6423 1078 / 9488 5722 or drop in an email at kali@gagrp.com

Contact person:

Mr. Kaliyaperumal Jayaram

Finance & Operations Manager

The GA Group Pte Ltd

+65 9488 5722 (Mobile) / 6423 1078 (Office)

kali@gagrp.com

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