Singapore Goods and Services Tax (GST) Guide
This guide provides an overview of the key concepts of Singapore’s GST system as it relates to Singapore companies – definition of GST, registration requirements, advantages and disadvantages of GST registration, filing GST returns, and schemes to aid business.
Related Links
∙ Singapore Company Incorporation
∙ Singapore Tax Calculator
∙ Singapore Work Permit
Goods and Services Tax (GST) is similar to Valued Added Tax (VAT) in other countries and is a relatively new form of tax in Singapore. GST was implemented on 1st April 1994 in Singapore. The GST Act is modeled on the UK VAT legislation and New Zealand GST legisl
ation. The Inland Revenue Authority of Singapore (IRAS) acts as the agent of the Singapore government and administers, asss, collects and enforces payment of GST. Introduction of GST is en as a means to lower personal and corporate income tax rates while maintaining a steady revenue ba for the government. GST is an indirect tax as it taxes expenditure. The current rate of GST is 7%.
What is GST?
Also known as Value Added Tax (VAT) in many other countries, Goods and Services Tax (GST) is a consumption tax that is levied on the supply of goods and rvices in Singapore and the import of goods into Singapore. GST is an indirect tax, expresd as a percentage (currently 7%) applied to the lling price of goods and rvices provided by GST registered business entities in Singapore.广播体操第七套
GST tax is charged to the end consumer therefore GST normally does not become a cost to the company. Business merely act as collecting agents on behalf of Singapore tax department.
What does GST mean for a Singapore company?
It means that if you are GST registered, you are required to collect GST tax from your customers for the goods and rvices rendered by you and then pay the tax collected to tax authorities. For example, if you charged S$100 for your rvices to a customer in Singapore, you must invoice your customer S$107 (S$100 for your rvice plus 7% GST tax). This GST amount invoiced collected on behalf of the tax authorities from the customer must subquently be nt to Singapore tax department on a quarterly basis via GST tax filing.
一般的床垫多少钱
Is my company required to register for GST?
聪明的英语怎么读GST is a lf-assd tax and business are required to continually asss the need to be registered for GST. GST registration falls into two categories: compulsory registration and voluntary registration.
Compulsory registration
Registering for GST is compulsory when
∙ the turnover of your business is more than 1 million SGD for the past 12 months - known as the retrospective basis OR星星上的人
∙ you are currently making sales and you can 职工社保reasonably expect the turnover of your business to exceed 1 million SGD for the next 12 months – known as the prospective basis.
Plea note that failing to register will attract penalties. There are anti-avoidance provisions to ensure that entities are not established merely to keep turnovers less than the threshold and thereby avoid registration.
Voluntary registration
You may apply to voluntarily register for GST if you are not liable to compulsorily register and you satisfy the following conditions:仍然的近义词
∙ Your annual turnover is not more than 1 million SGD, or
∙ You only supply goods outside Singapore (out-of-scope supplies), or
∙ You make exempt supplies of financial rvices that are also deemed as international rvices
攀岩的好处
The advantage of voluntary registration is that you can enjoy the benefits of claiming input tax incurred in the cour of your business. This is especially so when you make purely zero-rated supplies (exports or international rvices). Plea note, once you are voluntarily registered, you must remain registered for at least two years and you have to maintain all your records for at least five years, even after your business has cead and you have deregistered from GST. You may also have to comply with any additional conditions that are impod by the tax authority.
Exemption from Registration
If you make only zero-rated supplies you can apply for an exemption from registration, even if your taxable turnover exceeds the registration limits. This allows you to escape fro
m the administrative requirement of GST registration, as you would only be reclaiming and not paying tax to the IRAS, since the cost to you is the input tax. IRAS will approve the exemption, if more than 90% of your total supplies are zero-rated and if your input tax is greater than your output tax.
De-registration
You can cancel your registration when your business stops or when your business is sold as a whole to another person or when your sales figures do not exceed 1 million SGD. You must submit an application form, along with other relevant documents to the tax authority within 30 days from the date of cessation.
