Goods and services tax (GST) is a tax on the supply of goods and services in Singapore, currently at the rate of 7%. The tax is collected by GST registered businesses whereas the GST on imports is collected by Singapore Customs.
Businesses whose turnover exceeds S$1 million are liable to be registered with the Comptroller of GST. As the collecting agents of the government, it is imperative that GST Registered businesses actively ensure that their staff are trained to identify, capture and account the tax correctly. The penalties for non-compliance are severe.
Where the turnover is below the threshold of S$1 million, it is important to actively monitor the turnover to ensure timely registration. The Comptroller would back-date the registration where the liability was triggered before the application was submitted, and the GST is payable within 30 days from the Assessments raised by the Comptroller, even though the tax was not collected from its customers. This will have a direct impact on past profits and cash-flow of the business.
Voluntary registration is an option to be considered and there are various factors that have to be considered before making a decision to register. The key consideration should be whether your systems are in place to meet the strict compliance requirements for collecting and accounting GST
A foreign entity may be liable to register for GST in Singapore if the total revenue generated in Singapore exceeds the threshold of S$1 million. The GST registration has to be done through a local agent in Singapore. Do contact us for further details.
Businesses whose turnover exceeds S$1 million are liable to be registered with the Comptroller of GST. As the collecting agents of the government, it is imperative that GST Registered businesses actively ensure that their staff are trained to identify, capture and account the tax correctly. The penalties for non-compliance are severe.
Where the turnover is below the threshold of S$1 million, it is important to actively monitor the turnover to ensure timely registration. The Comptroller would back-date the registration where the liability was triggered before the application was submitted, and the GST is payable within 30 days from the Assessments raised by the Comptroller, even though the tax was not collected from its customers. This will have a direct impact on past profits and cash-flow of the business.
Voluntary registration is an option to be considered and there are various factors that have to be considered before making a decision to register. The key consideration should be whether your systems are in place to meet the strict compliance requirements for collecting and accounting GST
A foreign entity may be liable to register for GST in Singapore if the total revenue generated in Singapore exceeds the threshold of S$1 million. The GST registration has to be done through a local agent in Singapore. Do contact us for further details.