What Businesses Need to Know

Singapore's Goods and Services Tax (GST) is a value-added tax levied on the supply of goods and services in Singapore and the importation of goods into Singapore. It is an essential component of the tax system and impacts all businesses operating in the country. This guide provides an overview of GST and what businesses need to know to comply with the regulations.

What is GST?

GST is a consumption tax imposed on the supply of goods and services in Singapore and the importation of goods into Singapore. The current GST rate is 8%. It is similar to the Value-Added Tax (VAT) used in many other countries.

When do Businesses Need to Register for GST?

Businesses are required to register for GST if their annual taxable turnover exceeds S$1 million. There are two types of GST registration:

• Compulsory Registration: If your taxable turnover exceeds S$1 million in the past 12 months or is expected to exceed S$1 million in the next 12 months, you must register for GST.

• Voluntary Registration: Businesses with a taxable turnover of less than S$1 million can choose to register for GST voluntarily. However, they must stay registered for at least two years.

How to Register for GST

To register for GST, businesses need to submit an application to the Inland Revenue Authority of Singapore (IRAS). The application process includes the following steps:

1. Prepare Required Information: Gather all necessary information, including your business details, financial statements, and records of taxable supplies.

2. Submit the Application: Apply for GST registration through the myTax Portal on the IRAS website.

3. Complete the e-Learning Course: New registrants must complete two e-learning courses on GST basics and record-keeping before the registration can be processed.

GST Compliance Requirements

Once registered for GST, businesses must adhere to the following compliance requirements:

1. Issue Tax Invoices: Provide tax invoices for all taxable supplies, showing the GST amount separately.

2. File GST Returns: Submit GST returns (Form F5) quarterly, detailing the amount of GST collected and paid. The returns must be filed within one month after the end of each accounting period.

3. Pay GST: Pay the net GST amount (difference between GST collected from customers and GST paid on business purchases) to IRAS by the due date.

4. Maintain Proper Records: Keep accurate records of all business transactions, including tax invoices, receipts, credit notes, and accounting records. These records must be retained for at least five years.

5. Charge and Account for GST Correctly: Ensure that GST is charged at the correct rate on all taxable supplies and accounted for accurately in your GST returns.

Benefits of GST Registration

• Input Tax Credit: Claim credits for the GST paid on business purchases, reducing your overall tax liability.

• Enhanced Credibility: Being a GST-registered business can enhance your credibility with suppliers and customers.

• Competitive Advantage: GST-registered businesses can compete more effectively in the market, as they can claim input tax credits and pass on the cost savings to customers.

How Move2SG Can Assist

1. Registration Assistance: We assist with the GST registration process, ensuring all required information is submitted accurately.

2. Compliance Support: We help you understand and meet all GST compliance requirements, including issuing tax invoices, filing returns, and maintaining records.

Transferring a ready-made shelf company in Singapore can be a strategic move for entrepreneurs looking to quickly establish their business presence. By following the detailed steps outlined in this guide and leveraging the expertise of Move2SG, you can ensure a smooth and compliant transfer process. Let us help you navigate the complexities of acquiring a shelf company and set the foundation for your business success in Singapore.

For personalized support and expert advice, please contact us.