After the incorporation of a company in Singapore, it is compulsory to register for Goods and Services Tax (GST) if the annual taxable turnover exceeds SGD$1 million. Businesses that do not exceed SGD$1 million in taxable turnover may still choose to voluntarily register for GST.
Upon registration, it is compulsory to charge GST on your business supplies at the prevailing rate. The current rate for GST is 7%. Most businesses register for GST to claim back the GST incurred on business purchases. When GST paid to IRAS exceeds GST collected from your customers, the difference can be claimed from IRAS as GST refund.
As a GST-registered business, the business must submit the GST return to IRAS after the end of each accounting period, which is usually done on a quarterly basis.
1. Is GST applicable on all goods and services?
As a business, you must register for GST when:
If your business does not exceed $1 million in taxable turnover, you may still choose to voluntarily register for GST after careful consideration. Click here for further enquiries.
2. Are there any GST schemes available for businesses?
There are several assistance schemes to improve cash flow for businesses.
Feel free to contact us to find out which schemes are applicable to your business.
3. I am not GST-registered. Can I claim GST incurred on my business purchases?
No. If you are not a GST-registered business, you cannot claim the GST incurred on your purchases.