Company GST Services

Who needs to register for GST?

Goods and Service Tax (GST), similar to the Value Added Tax (VAT) in many countries, is a consumption tax on most domestic goods and services. Singapore’s GST is currently at 7%. GST rate will be increased to 8% effectively from 1 January 2023 and to 9% effectively from 1 January 2024. Registration of GST for companies can be compulsory or voluntarily.
 

1. Compulsory
   Supplier of goods and/or services is REQUIRED to register with Comptroller of GST if:

   • Prospective view: Annual revenue is expected to exceed or is likely to exceed S$1 million. It is not necessary to register if you are not reasonably sure that you will exceed the S$1 million thresholds in the next 12 months.

   • Retrospective view: The value of taxable supplies in the previous calendar year has exceeded S$1 million.
      

2. Voluntarily
    A supplier, whose revenue does not exceed S$1 million may voluntarily register with the Comptroller. It will be beneficial if a company is paying GST on its input but it is not required to charge GST on its customers. The approval of such registrations is at the discretion of the Comptroller.
   Once voluntarily registered, the supplier must comply with the regulatory requirements and stay registered for a minimum of 2 years.

 

What GST Services do we provide?

Atriox helps keep companies compliant with Singapore GST regulation compliance, laws and tax filing services. Our GST services include:

• GST Registration

• GST Computation and Filing

• GST Advisory
   

(a) GST Registration

Register GST for your business with IRAS.

 

Below are the 5 steps to register GST in Singapore:

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1. Compulsory or Voluntarily
   Business owners need to determine if they are required to register for GST according to the business’s annual taxable revenue.
    

2. e-Learning Course
   To register GST voluntarily, the company director, sole-proprietor, partner, trustee and/ or preparer are required to complete TWO e-Learning courses and pass the quiz within the course. You may skip this step if:

   1. The mentioned parties of the business have experience in managing other existing GST-registered businesses;

   2. The person preparing your GST returns is an Accredited Tax Advisers (ATA) or Accredited Tax Practitioners (ATP); or

   3. The business is applying to be registered under the Overseas Vendor Simplified Pay-only Registration Regime.
       

3. ​GST Application: Submission
   GST registration application and the supporting documents have to submit to the IRAS.
    

4. GST Application: Processing
   After submitting the GST registration application, IRAS may request additional information.
    

5. GST Application: Registered
   Once the company is successfully registered, the applicant will receive a letter to your company’s registered address notifying you of your successful application. You may also view a copy of the notification letter by logging in to IRAS website.
   The letter will consist of the following details:

   1. GST registration number

   2. The effective date of GST registration

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(b) GST Computation and Filing

Singapore companies registered for GST are required to submit returns related to this tax. GST returns must be filed in accordance with the company’s accounting period, which can be:

1. Monthly

2. Quarterly

 

The form must be completed with information about the company’s sales, exports, and purchases from companies registered for GST themselves, as well as the GST collected by the end of the accounting period. The company will also mention the amount claimed for the respective period. As part of our accounting services, we will help record the GST and include it as part of the services.

(c). GST Advisory

As part of our advisory services, we also provide advice on all GST-related matters including:

• Interpretation of provisions, 

• Classification, 

• Valuation, 

• GST compliance methodology, 

• Representations, 

• GST Technology Software

• GST registrations / amendments

• GST de-registrations, etc.

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GST Penalties

The potential GST penalties imposed by IRAS are as follows:

1. Failed to file GST Returns by the due date (i.e. 1 month after the end of prescribed accounting period)

   1. Penalty of SGD200 will be imposed for each month that GST return continued not to be submitted, up to a sum of SGD10,000
       

2. ​Failed to make GST Payment by the due date

   1. ​Penalty of 5% of the unpaid tax will be levied

   2. If payment is still unpaid after 60 days, an additional penalty of 2% on the GST unpaid will be added from the first day after the due date

   3. The penalty will be added for each complete month, subject to the maximum of 50% of the unpaid tax.

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Types of Supplies in Singapore

GST is applied to all imported goods and mostly all goods and services in Singapore. Below are the breakdown of 4 categories of supplies:

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GST Exemption

A company with a turnover of more than S$ 1 million is able to apply for exemption from registering GST if:

1. The taxable turnover (total value of all taxable supplies made in Singapore excluding GST) is made up of zero-rated supplies

2. Sales did not exceed S$ 1 million. It is not required to register for GST if there is no certainty in your forecast.

 

If the GST exemption from registration is granted, it is still required for you to monitor the taxable turnover and inform IRAS if anything changes.

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GST Output & Input Tax (GST returns and payments)

GST-registered businesses must charge and account for GST at 7% (current rate) on all the sales of goods and services except for zero-rated and exempted supplies.

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The GST is charged and collected from customers for goods and services sold is called an output tax. This output tax is required to pay to IRAS within a month from the end of the accounting period (normally are quarterly basis).

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Whereas, the input tax is the GST paid for business purchases (including imports). Both output and input taxes must be reported in the GST return. The amount difference between output tax and input tax is the net GST.

If output tax > input tax = Payable to IRAS
If input tax > output tax = Refundable by IRAS

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Any wrongfully charged or collected GST must be remitted to IRAS.