Companies with an annual turnover exceeding S$1 million must register for Goods and Services Tax (GST). We offer registration, compilation and filing services related to GST.
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. The current GST rate is 8%.
GST exemptions apply to the provision of most financial services, the supply of digital payment tokens, 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 (0% GST).
Companies with an annual turnover exceeding S$1 million must register for GST (compulsory registration). Companies that do not exceed S$1 million in turnover, depending on their unique situations, may also choose to register for GST (voluntary registration).
Companies that register for GST are required to file their GST returns every quarter. Our GST Compilation Service is a part of our offering of accounting services in Singapore. Our GST compilation services include:
The GST return and payment are due one month after the end of the accounting period covered by the return.
|GST Accounting Period||Filing and Payment Due Date|
|Jan – Mar||30 Apr|
|Apr – Jun||31 Jul|
|Jul – Sep||31 Oct|
|Oct – Dec||31 Jan|
If you have been granted special GST accounting periods, the due date to submit your returns is one month from the last date of the special accounting period.
A GST-registered business must file a ‘Nil’ GST return even if there was no business activity during the accounting period. If your business has ceased, you need to apply for cancellation of GST registration.
For non/late submission of GST F5/ F8 returns, IRAS may:
Tax due must be paid within one month from the end of each accounting period. For non/late payment, a 5% penalty will be levied on the amount of tax unpaid by the due date. An additional penalty of 2% per month on tax remaining unpaid after 60 days from the due date of the prescribed accounting period (subject to a maximum of 50% of the outstanding tax) may also be.
You may claim pre-registration GST but you have to satisfy both the general rules for input tax claims and the pre-registration GST rules.
General Rules for Input Tax Claims
You have taken reasonable steps to ascertain and concluded that the goods or services were not part of a Missing Trader Fraud arrangement.
You may apply to cancel your GST registration if you are not liable for registration. However, if you were previously registered on voluntary basis, you must remain registered for at least 2 years before you can cancel your registration.
You may also cancel your GST registration if you are certain that the taxable turnover for next 12 months will be S$1 million or less due to specific circumstances, (e.g. termination of a high value sale contract from a major customer or large-scale downsizing of business). You will have to substantiate your basis of projection with supporting documentation.
When you register for GST, you are allocated quarterly GST accounting periods according to your financial year-end. Your GST accounting periods are not automatically adjusted whenever there is a change to your financial year end.
Depending on your business needs, you may write in to IRAS to request for a change in filing frequency via myTax Mail in myTax Portal on IRAS’ website. Your request will be subjected to IRAS’ approval.
With effect from 1 Jan 2020, GST will be introduced on imported services:
Generally, input tax incurred in the making of exempt supplies is not claimable unless the De Minimis Rule is satisfied. The De Minimis Rule allows GST-registered businesses to claim input tax on exempt supplies.
To satisfy the De Minimis Rule, the value of the exempt supplies has to be less than or equal to: