Accounting Services

All businesses and companies need to keep proper accounting records for their own business needs as well as regulatory compliance. The landscape for accounting is changing rapidly. With remote working becoming the new norm, the use of technology in accounting such as cloud accounting services has become increasing prevalent and important.

As more companies embrace working from home and the de-centralisation of their operations, more efficient and productive ways are sought to keep their businesses running and profitable. Our company has also leveraged the use of technology to help our clients find the edge in an increasingly competitive business landscape.

GST Compilation Services

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 (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 7%.

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).

GST Compilation Service

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:

  • Assess GST registration liability
  • Apply for GST registration/exemption from GST registration or de-registration
  • Advice on GST treatment of day-to-day business transactions
  • Perform GST due diligence reviews
  • Support in tax audits/ tax investigation process with IRAS

Compliance Requirements

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.

FAQ

1. How much is the penalty for late filing?

For non/late submission of GST F5/ F8 returns, IRAS may:

  • With effect from 1 April 2018 – impose a late submission penalty of $200 immediately once the GST return is not filed by the due date. A penalty of $200 will continue to be imposed for every completed month that the GST F5/F8 return is outstanding (subject to a maximum of $10,000 for each outstanding F5/F8 return).
  • Issue an estimated assessment of the tax due and the amount is subject to late payment penalties. The estimated assessment and late payment penalties will only be revised upon receipt of the overdue GST return.

2. How soon must I pay the GST due?

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.

3. Can I claim the GST expenses incurred before GST registration (Pre-registration GST)?

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

  1. The goods or services must have been supplied to you. For imported goods, the goods must have been imported by you;
  2. The goods or services are used or to be used for the purpose of your business;
  3. Local purchases must be supported by valid tax invoices addressed to you, or simplified tax invoices at the time of claiming the input tax;
  4. Imports must be supported by import permits which show you as the importer of the goods;
  5. The goods or services must be used for the making of taxable supplies (i.e. standard-rated supplies and zero-rated supplies) or out-of-scope supplies (e.g. third country sale of goods), which would be taxable supplies if made in Singapore, in the course or furtherance of your business;
  6. The input tax claims are not disallowed under Regulations 26 and 27 of the GST (General) Regulations; and

You have taken reasonable steps to ascertain and concluded that the goods or services were not part of a Missing Trader Fraud arrangement.

4. How to voluntary cancel GST registration?

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.

5. What is the effect to GST for change of financial year end?

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.

6. What is reverse charge and how does it work?

With effect from 1 Jan 2020, GST will be introduced on imported services:

  1. Reverse Charge (RC)
    The recipient of the services will account for GST on the services he imports, as if he were the supplier. He may claim GST as his input tax, subject to normal input tax recovery rules. This applies to Business-to-business transactions.
  2. Overseas Vendor Registration (OVR) regime
    From 1 Jan 2023, GST will be extended to Business-to-Consumer imported non-digital services, through the OVR regime. Digital services which are currently subject to GST will remain taxable under the extended overseas vendor registration regime. Consequently, from 1 Jan 2023, all Business-to-Consumer supplies of imported remote services, whether digital or non-digital, will be taxed by way of the extended OVR regime.

7. Can I claim input-tax for exempt supplies?

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:

  1. Average of $40,000 per month; and
  2. 5% of the total value of all taxable and exempt supplies made in that period.