How do we assist you in filing Quarterly GST Returns to IRAS?
Our GST service team offers valuable advice and includes the following steps:
1. Assist to complete and submit GST registration (GST F1 forms)
2. Assess and assist in the application for exemption for GST registration (GST F2 forms)
3. Advise proper documentation and best practice to comply with the GST Act
4. Perform quality checks on GST Quarterly returns before submitting the returns to IRAS (GST F5 forms)
5. Perform a yearly review of GST returns against bookkeeping records to uncover errors early and reduce paying hefty penalties
6. Assist in filing for voluntary disclosure of mistakes and request for zero or reduced penalties (GST F7 forms)
7. Assist in de-registration of GST (GST F8 forms) and
8. Read, interpret and advise on GST correspondences from IRAS.
We assist our clients in complying with the GST Act and addressing any regulatory challenges they may be experiencing.
Read more on GST Schemes
What does GST mean to businesses in Singapore?
GST (Goods and Services Tax) in Singapore is a consumption tax applied to almost all goods and services imported into the country (collected by Singapore Customs). It is also known as Value Added Tax or VAT in other countries. The provision of most financial services, the provision of digital payment tokens, the sale and leasing of residential property and the importation and supply of investment precious metals are exempt from GST. International exports are not subject to GST.
GST was introduced in Singapore in 1994 in order to shift the country’s dependence from direct taxes to indirect taxes. GST is at 7% since 1 July 2007. Businesses must be registered to charge GST. GST in Singapore is a general consumption tax that applies to almost all goods and services as well as imports. GST is collected by GST-registered businesses when customers purchase taxable goods and services. Suppliers are essentially serving as agents for GST collection.
There are GST exemptions for most financial services, importation and local supply of precious metals, and sale and lease of residential properties.
1. Exported goods and international services are at 0% (zero-rated).
2. Taxable supplies include standard-rated supplies (7% GST) and zero-rated supplies (0% GST).
3. Non-taxable supplies (GST is not applicable) include exempt supplies and out-of-scope supplies.
Read more on GST Voluntary Registration
How does GST affect businesses in Singapore?
All GST registered entities in Singapore must collect the 7% GST from the customers and pay the collected GST to the Singapore tax authorities quarterly. GST registered companies should bear in mind the due date for filing GST returns, and to make payment of GST collected to IRAS.
You must issue a tax invoice when your customer is GST registered. To claim input tax on its standard-rated purchases, your customer is required to keep this tax invoice as a supporting document. Generally, tax invoices are required to be issued within 30 days of the date of supply.
If your customer purchases a number of standard-rated supplies, there are two ways to calculate the GST on the tax invoice:
(a) Add GST to the value of each item; or
(b) Add GST to the sum of the values of all items
Due to rounding, the total GST may differ depending on the method you choose. All methods are acceptable and should be used consistently.
In Singapore, when do you need to register for GST?
A business must register for GST when its taxable turnover exceeds S$1 million. You may still choose to voluntarily register for GST even if your business does not have a taxable turnover exceeding S$1 million.
When your business is GST registered, you can charge GST on goods or services. The following 4 conditions must be met:
1) The supply must be made in Singapore (In the event that the place of supply is located outside of Singapore, the supply will be deemed out of scope).
2) The supply must be a taxable supply (Taxable supplies are all goods and services which are not specifically exempt from taxation (also known as exempt supplies).
3) The supplier must be a taxable person (Taxable persons include GST-registered individuals or individuals who are liable to register for GST. GST is only applied to taxable supplies that are supplied by a GST-registered person or a person likely to register for GST).
4) The supplier must be associated with the taxable person’s business activities (GST is payable if the sale is made as part of the normal course of business of the taxable person. A taxable person may not charge GST on a personal transaction if the supply is made in the course of his or her personal business. For example, GST is not imposed on the sale of a GST-registered trader’s personal limited edition toy collection).
You can search for GST registered companies via IRAS – GST Registered Business Search
In GST, what are the different types of supply?
GST supplies may be broadly classified into two categories: taxable supplies and non-taxable supplies.
(a) Taxable supplies can be divided into standard-rated and zero-rated supplies.
(b) Non-taxable supplies can be divided into exempt supplies and out-of-scope supplies.
A distinction between the different types of supply is important because it determines whether a supply is subject to GST and the rate at which GST will be charged. In addition, it determines whether input taxes incurred in making such supplies may be reclaimed. A deemed supply is considered a supply even if no consideration is involved.
Read more on GST Record-Keeping Requirements
GST reporting requirement for foreign exchange transactions, sales and purchases in non-SGD currencies
1. Sales made in foreign currency
GST registered businesses should use convert the approved exchange rate to convert the following items in the tax invoice into Singapore dollars
(a) total amount payable excluding GST
(b) total GST payable
(c) total amount payable including GST.
The tax invoice will show the Singapore dollar equivalent amount separately from the foreign currency amounts. The Singapore dollar amounts indicated on the tax invoice should be reported in the “value of standard-rated supplies” and the “output tax due” sections in the GST return.
Examples of approved exchange rates include those published by Singapore banks and local newspapers. For the purposes of internal management reporting, accounting and GST, the exchange rate must be updated at least once every three months.
2. Purchases and imports made in foreign currency
In the tax invoices of suppliers, the GST amount should be converted into Singapore dollars using the exchange rate provided by approved sources. GST registered companies should claim input tax based on the Singapore dollar amounts stated on the supplier’s tax invoice. This requirement applies even if the GST registered businesses record the purchases at a different exchange rate in the accounting system.
For imports, GST registered businesses should claim input tax based on the Singapore dollar amounts shown in the import permits issued by Singapore Customs.
Updates: GST rate increases in 2023 and 2024
Singapore will raise GST to 8% from 1 January 2023 and to 9% from 1 January 2024.
All price displays must include GST.
Accordingly, all prices displayed from 1 January 2023 must include 8% GST. In the event you are unable to switch your price tags overnight, you may display two price tags:
(a) One price tag before 1 Jan 2023 with price inclusive of GST; and
(b) One price tag from 1 Jan 2023 with price inclusive of GST.
Consult Singapore GST Team for advice
We have extensive experience in providing GST registration & exemption advice, and quarterly filing of GST returns support to IRAS. Our goal is to develop well-coordinated services that can work best according to what the company needs to minimize its GST liabilities and, at the same time, comply with IRAS requirements.
For more information, please send your questions through Submit Enquiry to the GST team. The GST team will contact you to understand your situation and assist you.