GST Returns and Compliances
WHAT IS GST?
Goods and Services Tax (GST) is a tax levied on the import of goods and nearly all supplies of goods and services in Singapore. It is known as Value Added Tax (VAT) in other countries. The current GST rate for purchases of goods and services to GST-registered businesses is 7%.
As announced in Singapore Budget 2022, the GST rate will be increased from:
- 7% to 8% with effect from 1 January 2023 and
- 8% to 9% with effect from 1 January 2024.
GST registration for businesses
Not all businesses are required to register with GST. Generally, if your taxable turnover is more than S$1 million or expects to be more than S$1 million, you can register whether on a compulsory or voluntary basis.
Do I need to register for GST (An Overview)
Exemption from GST Registration
Generally, if your annual taxable turnover exceeds S$1 million, you must register for GST. However, if you meet both the conditions below, you may apply for exemption from registration with GST.
- The proportion of your zero-rated supplies over total taxable supplies exceeds 90%
Total taxable supplies refer to the summation of standard-rated supplies and zero-rated supplies, but exclude the following:
- The value of relevant supplies received from your supplier that was subject to customer accounting; and
- The value of imported services is subject to reverse charge.
- You would be in a net refundable position had you been GST-registered
A net refundable position refers to a situation where the output tax chargeable is less than the input tax claimable on imports and/or purchases from GST-registered suppliers.
What are the responsibilities of a GST-registered company?
Once your application for GST registration is approved, you will receive an approval letter from IRAS that states all the responsibilities that you need to fulfill from the effective date of registration. These include:
- Charge and account for GST on standard-rated supplies. You need to charge and account for 7% GST for standard-rated supplies made in Singapore.
- File GST returns and pays the tax due. You must file your GST returns within one month from the end of each accounting period via mytax.iras.gov.sg portal. A “NIL” GST return must still be filed if there is no transaction.
- Keep proper business and accounting records. You must keep all business and accounting records for at least 5 years even if you have ceased business or have been deregistered from GST.
- Display prices with GST. Any price displays, advertisements, publications, or quotations in respect of goods or services made to the public must be inclusive of GST. If both GST-inclusive and GST-exclusive prices are displayed, the GST-inclusive price must be displayed at least as prominently as the GST-exclusive price.
- Issue tax invoice with GST registration number. You are required to issue tax invoices/customer accounting tax invoices for standard-rated supplies. A simplified tax invoice may be issued if the total amount payable for your supply (including GST) does not exceed S$1,000. Your GST Registration Number should be reflected on all your tax invoices, simplified tax invoices and receipts.
- Notify IRAS of changes. Comptroller must be notified of changes within 30 days after any change. These changes include the following:
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Change in GST mailing address;
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Change in business constitution or ownership;
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Change in partner(s) or particulars of partner(s); and
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Set up of new partnership businesses with the same composition of partners.
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- Account for GST at the point of deregistration. You need to account for GST on business assets held on the last day of registration if:
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GST was previously claimed on the business assets; and
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Total market value of these business assets is more than $10,000 These assets include inventories, fixed assets, non-residential properties and goods imported under the various GST schemes.
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Accmaster will be very glad to help you. Contact our Team
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| Our GST Returns and Compliances Services include:
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Michael Chng
Accounting Director
