Goods and Services Tax (GST) is a consumption tax that is levied on the supply of goods and services in Singapore, as well as the import of goods into Singapore.

In some countries, GST is known as Value-Added Tax (VAT). Currently, businesses charge GST at 7% on the value of supplied or imported goods or services. The GST collected from customers is termed output tax and must be paid to the Inland Revenue Authority of Singapore (IRAS). Businesses can claim GST paid to suppliers or on imports, known as input tax, as a credit against the output tax.

As a business owner in Singapore, you need to know if you are liable to register for GST, how to register for GST, how to charge and collect GST, how to file GST returns, and how to claim GST refunds. You also need to know if you are eligible for any GST schemes or reliefs that can benefit your business.

Do You Need to Register for Goods and Services Tax (GST) in Singapore?

If you are carrying on a business in Singapore, you need to register for GST if:

  • Your taxable turnover for the past four quarters is more than S$1 million; or
  • The business expects its taxable turnover to exceed S$1 million in the next 12 months.

Taxable turnover refers to the total value of all taxable supplies made in Singapore, excluding GST. Taxable supplies comprise standard-rated supplies (subject to 7% GST), zero-rated supplies (subject to 0% GST), and deemed supplies (treated as supplies even though no payment is received).

You can also choose to register for GST voluntarily if your taxable turnover does not exceed S$1 million, but you must remain registered for at least two years and comply with all GST obligations.

How to Register for Goods and Services Tax (GST) in Singapore?

You can register for GST online via myTax Portal or by submitting a paper application form to IRAS. You will need to provide information such as your business name, address, Unique Entity Number (UEN), contact details, bank account details, financial year end, expected taxable turnover, nature of business activities, and declaration of compliance.

IRAS will send a letter of notification within 10 working days after approval. It will include your GST registration number, effective date, and filing frequency. Additionally, a Welcome Package will be provided with guidance on charging and collecting GST, filing returns, and claiming refunds.

How to Charge and Collect GST in Singapore?

Once registered for GST, you must actively charge and collect GST on all taxable supplies made in Singapore, unless they qualify as exempt or out-of-scope. Additionally, you must issue tax invoices or receipts to customers, clearly showing the amount of GST charged and other relevant details. Display prices inclusive of GST, clearly indicating that GST is included.

You must account for the GST collected from your customers as output tax in your GST returns. You must pay the output tax to IRAS by the due date stated in your letter of notification. You can pay online via myTax Portal or by other modes such as GIRO, internet banking, or cheque.

What are some of the Goods and Services Tax (GST) Schemes and Reliefs in Singapore?

There are various GST schemes and reliefs in Singapore that can benefit your business, such as:

01

Cash Accounting Scheme: Account for GST based on payments from customers and to suppliers, not invoices. This benefits businesses with slow-paying customers or long credit terms. Eligibility requires an annual turnover under S$1 million and the sale of goods with credit terms exceeding 30 days.

02

Gross Margin Scheme: Calculate GST only on the gross margin, not the full selling price, to avoid double taxation when buying from non-GST registered individuals who have paid GST. Eligible goods include jewellery, antiques, and works of art.

03

Tourist Refund Scheme: Tourists can claim GST refunds on purchases when leaving Singapore, potentially increasing sales. Eligible goods include souvenirs, clothing, and electronics.

04

Major Exporter Scheme: Enable tourists to claim GST refunds on purchases when leaving Singapore, potentially boosting sales. Eligible goods include souvenirs, clothing, and electronics.

05

Zero GST Warehouse Scheme: Defer GST on imported non-dutiable goods by storing them in a designated warehouse until removal. This benefits businesses planning to re-export or supply to overseas customers. Eligible for warehouse operators or traders of non-dutiable goods.

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