The Goods and Services Tax (GST) is a broad-based value-added tax levied on the import of goods, as well as nearly all supplies of goods and services in Singapore. The current GST rate in Singapore is 7%. Registering for GST is a mandatory requirement for companies that exceed S$1 million in taxable turnover annually. However, businesses with annual revenue below this threshold can voluntarily register for GST.
The registration process for GST in Singapore has been simplified to encourage compliance among businesses.
Firstly, determine if your business needs to be registered under the compulsory or voluntary scheme. Compulsory registration applies if you have had a taxable turnover exceeding S$1 million over the past 12 months or expect to do so within the next 12 months. Voluntary registration may be beneficial if you frequently deal with GST-registered entities or plan to expand your business.
Once you’ve determined which category applies to your business, visit the Inland Revenue Authority of Singapore’s (IRAS) official website and download Form GST F1 – Application for Registration. This form must be completed accurately and truthfully; any false declarations can lead to penalties.
After completing Form GST F1, gather all necessary supporting documents required by IRAS such as financial statements, invoices and contracts showing sales projections etc., then submit them along with your application form through myTax Portal on IRAS’s website.
Upon submission, IRAS will typically take about ten working days to process applications for compulsory registrations while it may take up two months for voluntary registrations due largely because of additional checks performed by IRAS including whether there are proper record keeping systems in place.
If approved, an approval letter containing your company’s unique seven-digit Goods & Services Tax Identification Number (GSTIN), effective date of registration and filing frequency will be sent out by post from IRAS within one week after processing completion. This GSTIN should be printed on all your business invoices, receipts and other documents relating to supplies.
Once registered, you are required to file GST returns periodically – typically every three months. These returns must detail the amount of GST collected and the amount of GST claimed for that particular period.
In conclusion, registering Steps to register for GST in Singapore is a straightforward process that can be completed online through the IRAS portal. To ensure smooth registration, businesses should maintain proper accounting records and regularly monitor their taxable turnover. By understanding these steps, businesses can confidently navigate through the process of registering for GST in Singapore.