Goods and Services Tax (GST)

Singapore imposes GST on most goods, services, and imported goods. While consumers ultimately pay GST, businesses are responsible for collecting and remitting it to the government. The Inland Revenue Authority of Singapore (IRAS) manages, assesses, and collects GST.

The current Goods and Services Tax (GST) rate in Singapore is 8%. This rate is set to increase to 9% in 2024, as announced by the government, reflecting ongoing economic adjustments and policy changes.

Benefits of GST Registration

• Fair Tax System: GST is a consumption-based tax, ensuring that tax is proportionate to consumption, making it equitable.

• Operational Credibility: Registering for GST indicates that a business is mature and operationally sound, enhancing its credibility.

• Consumption-Based Tax: GST applies only to goods and services consumed, not to savings or investments, thereby not discouraging savings or investment activities.

• Cost Efficiency: GST-registered businesses can claim input tax credits on their purchases, effectively reducing operating costs by offsetting the GST paid on business expenses against the GST collected on sales.

Penalties for Late Payment

• Initial Penalty: If GST submissions are late, an initial penalty of 5% of the outstanding tax amount is imposed.

• Additional Penalties: If payment is still not made within 60 days, an additional 2% penalty per month is levied, up to a maximum of 50% of the outstanding tax.

Requirements for GST-Registered Companies

• Administrative Obligations: GST-registered companies must maintain accurate business and accounting records for a minimum of five years. This includes ensuring that all tax invoices and receipts prominently display the GST registration number. Any changes in the company’s business circumstances must be reported to IRAS within 30 days.

• Display Requirements: All prices, advertisements, and publications must clearly include GST. Failure to comply with these display requirements can result in fines of up to $5,000, emphasizing the importance of transparency and compliance in business operations.

Choosing Move2SG

Move2SG provides comprehensive support throughout the Singapore GST Application process. Our services include:

• Assisting in the preparation and submission of all required documents.

• Ensuring compliance with all legal and regulatory requirements.

• Offering expert guidance to ensure a smooth and efficient application process.

For personalized support and expert advice, please contact us.