Goods & Services Tax (GST)
Recently we have received a few enquiries regarding Goods & Services Tax (GST), how does it impact business cost, compliance cost, bookkeeping workflow, and why there is a saying for GST registration – “when you are in, you are out”…
What It Is and How It Works ?
* 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 & services in Singapore.
* GST exemptions apply to the provision of most financial services, the sale & lease of residential properties, & the importation and local supply of investment precious metals ( eg Gold ).
* Goods that are exported & international services are zero-rated.
Businesses Required To Register For GST
As a business, you must register for GST when:
* Your taxable turnover for the past 12 months ending Mar, Jun, Sep or Dec (referred to as “quarter”) > S$1 million; or
* You are making or intend to make taxable supplies and you can reasonably expect your taxable turnover in the next 12 months to be > $1 million (e.g signing of a sales contract or business agreement)
If your business < S$1 million in taxable turnover, you may still choose to voluntarily register for GST after careful consideration.
Voluntary registration
You may apply to voluntarily register for GST if you are not liable to compulsorily register & you satisfy the following conditions:
* Your annual turnover is < 1 million SGD, or
* You only supply goods outside Singapore (out-of-scope supplies), or
* You make exempt supplies of financial services that are also deemed as international services
The advantage of voluntary registration is that you can enjoy the benefits of claiming input tax incurred in the course of your business. This explains why ” you are In, you are Out”.
Once you are GST registered, you would need to do 3 things :
1. All your Sales Invoices must have your GST Reference
2. At minimum close your books every 3 months, and
3. To compile & file GST Return from the bookkeeping done every calendar quarter
Please note, once you are voluntarily registered, you must remain registered for at least 2 years & you have to maintain all your records for at least 5 years, even after your business has ceased & you have deregistered from GST.
Corporate BackOffice shall be glad to :
1. Do GST registration for you,
2. Do Bookkeeping on Quarterly basis, and
3. Compile your GST Returns properly every quarter end for submission to IRAS on your behalf
If you need help, feel free to contact us at :
(M) +65 90880669
