Understanding GST in Singapore: Registration, Filing and Compliance
Goods and Services Tax (GST) is a broad-based consumption tax levied on the import of goods and on most supplies of goods and services in Singapore. It is collected by GST-registered businesses on behalf of the government and remitted to the Inland Revenue Authority of Singapore (IRAS).
Understanding when you must register, how to charge and collect GST correctly, and what you can claim back are essential obligations for any growing Singapore business.
The Current GST Rate
The GST rate in Singapore is currently 9%, effective from 1 January 2024. This followed a two-step increase from 7% (to 8% on 1 January 2023, and then to 9% on 1 January 2024).
GST Rate History
GST Registration
Mandatory Registration
A business must register for GST if its taxable turnover exceeds S$1 million in the past 12 months, or if it is reasonably expected to exceed S$1 million in the next 12 months.
Once the threshold is crossed, you must apply for GST registration within 30 days. You will be registered from the date you are liable to be registered, or an earlier date agreed with IRAS. Operating without registering when required is an offence under the GST Act.
Voluntary Registration
Businesses below the S$1 million threshold may register for GST voluntarily. This is worth considering if your customers are primarily GST-registered businesses (who can claim back the GST you charge), or if you incur significant GST on your inputs and wish to recover it.
Note: Voluntarily registered businesses must remain registered for at least 2 years and must comply with all GST obligations. Cancellation before 2 years requires IRAS approval.
Charging and Collecting GST
Output Tax
GST charged on your sales is called output tax. Once registered, you must add 9% GST to the price of all standard-rated supplies and issue a tax invoice to your customers. The tax invoice must include your GST registration number, the GST amount charged, and other required details.
Input Tax
GST paid on your business purchases and expenses is called input tax. GST-registered businesses can claim input tax as a credit against the output tax collected, reducing the net amount payable to IRAS.
Not all input tax is claimable. GST on private cars, club membership fees, medical and family expenses is generally not recoverable.
Types of Supply
| Type | GST Rate | Examples |
|---|---|---|
| Standard-rated | 9% | Most goods and services sold in Singapore |
| Zero-rated | 0% | Exports of goods, international services |
| Exempt | Not subject to GST | Sale/lease of residential property, financial services |
| Out-of-scope | Not subject to GST | Private transactions, third-country sales |
Filing GST Returns
GST-registered businesses must file a GST return (Form F5) with IRAS at the end of each accounting period. Depending on the accounting period assigned by IRAS, this is done either monthly or quarterly.
The return and any GST payable are due within one month after the end of each accounting period. Late filing and late payment both attract penalties.
What to report in Form F5
- Total value of standard-rated supplies (Box 1)
- Total value of zero-rated supplies (Box 2)
- Total value of exempt supplies (Box 3)
- Total value of all supplies (Box 4)
- Total value of taxable purchases (Box 5)
- Output tax due (Box 6)
- Input tax claimed (Box 7)
- Net GST payable or refundable (Box 8)
Penalties for Non-Compliance
Failure to register when required, late filing, and under-declaration of output tax are offences under the GST Act. Penalties include a 5% late payment penalty on unpaid tax, interest on outstanding amounts, and in serious cases, prosecution. It is important to maintain complete GST records for at least 5 years.
Need help with GST registration or compliance?
Adpeco Integrated Services and HSM Tax Services handle GST registration, quarterly filing, and ongoing compliance for Singapore businesses.