Goods & Services Tax (GST)

When is it compulsory to register for GST?↓

A supplier of goods and/or services, whose annual revenue exceeds or is likely to exceed S$1 million, is required to register with the Comptroller of GST.


Can I choose to register?↓

A supplier whose revenue does not exceed S$1 million may voluntarily register with the Comptroller if it is beneficial to the business. The approval of such registrations is at the discretion of the Comptroller and certain conditions may be imposed e.g. requirement for a security deposit. Once voluntarily registered, the supplier must comply with the regulatory requirements and stay registered for a minimum of 2 years.


Why should I register?↓

  • Most businesses register for GST to claim back the GST incurred on their business purchases.

  • When GST paid exceeds GST collected, the difference can be claimed from IRAS as a GST refund.


Who can register?↓

  • Sole proprietorships

  • Partnerships
  • Limited Liability partnerships
  • Companies
  • Clubs, associations, management corporations or organizations
  • Non-profit organizations
  • Statutory boards
  • Government bodies


What is Taxable Supply?↓

A Taxable Supply is a supply of goods and services made in Singapore other than an exempt supply. GST is chargeable on a taxable supply of goods and services made by a taxable person in the course or furtherance of his business.

Taxable supplies consist of both standard-rated supply (sales of goods or services provided in Singapore which is subject to 7% GST) and zero-rated supply (export of goods to overseas customers and supply of international services).

Any GST incurred by a taxable person on business purchases used in making taxable supplies can be recovered from the Comptroller of GST.


What is an Exempt Supply?↓

There are 3 broad categories of exempt supply – Sale and lease of residential properties, Provision of financial services (e.g. provision of loan, exchange currency) and Import and local supply of investment precious metals. GST will not be charged on the exempt supply. Generally, any GST incurred in making exempt supplies cannot be claimed as input tax.


What is an Out-of-Scope Supply?↓

An Out-of-Scope Supply is a supply which is not made in Singapore. An example of Out-of-scope supplies would be third country sales where the goods are shipped directly from a place outside Singapore (e.g. China) to another place outside Singapore (e.g. Malaysia). Sales of overseas goods made within the Free Trade Zone and Zero GST Warehouses are also considered as out- of-scope supplies.

Since these supplies fall outside the scope of GST, GST is not chargeable on these supplies. Businesses are not required to report such supplies in the GST returns.


What is Taxable Turnover?↓

“Taxable Turnover” is the total value of all taxable supplies made in Singapore (excluding GST) in the course of furtherance of business. This includes the value of all standard-rated supplies (GST at prevailing rates) and zero-rated supplies (GST at 0%), but it excludes exempt supplies, out-of-scope supplies and the sale of capital assets.


My turnover is more than S$1 million in the past 12 months but I do not want to be registered for GST. Can I be exempted from registration?↓

It is compulsory for you to register for GST once your liability to register arises. However, if you are certain that your turnover for the next 12 months will not be more than S$1 million (e.g. where you have plans to wind up your business in the next 12 months), you will not be required to register for GST.

If your taxable supplies are wholly and substantially zero-rated supplies, you may apply for exemption from GST registration. Where the exemption is granted, you need not file GST return. However, you will not be able to claim the GST incurred on your business purchases of goods or services. Zero-rated supplies refer to export of goods or provision of international services e.g. provision of international transport.


If I am liable to register, can I choose the date that I want to commence registration?↓

Once you are liable to register, you are required to inform the Comptroller for GST within 30 days from the date your liability arises. The Comptroller will register you within the next 30 days. You can be registered earlier than this date (subject to the Comptroller’s approval).


If I fail to register and did not collect any GST from my customers, will my GST registration be backdated?↓

Yes. You will be required to account for and pay the GST on all your taxable supplies made from the date that you should be registered and to pay the relevant penalties. This is so, even if you did not collect any GST from your customers.


What is the penalty for the late registration of GST?↓

If you are late in registering for GST, you will be guilty of an offence and be liable on conviction to a fine up to S$10,000 and to a penalty equal to 10% of the tax due in respect of each year commencing from the date on which you are required to make the notification or to apply for registration.


As a GST-registered person, what are my obligations?↓

Your responsibilities and obligations include:

  • Accounting for GST on all your taxable supplies. These include the disposal of business assets and the recovery of expenses from third party
  • Displaying, advertising, publishing or quoting GST-inclusive price for any supply of goods or services to the public.
  • Maintaining all business accounts and records for at least five years.
  • Excluding GST claims on purchases incurred for exempt supplies and non-business activities, and apportioning your claim on the residual input tax e.g. GST on overheads expenses.
  • E-Filing GST returns even if there are no business transactions/ no taxable supplies made and pay the tax by the due date, if applicable. Filing of GST return and payment is due one month after the end of the GST accounting period. Penalties will be imposed on late submission and payment.
  • Notifying the comptroller in writing within 30 days if there is a change in your business circumstances. These include change(s) in:

– Business constitution;

– Business name; or

– Registered / mailing address

  • Informing the Comptroller in writing and applying for cancellation of GST registration if your business ceases to make taxable supplies within 30 days from the date of cessation.
  • Accounting for GST on the open market value of all taxable business assets held where the total value is more than S$10,000 on the last day of your GST registration and input tax has been allowed on these assets previously.