Goods & Services Tax (GST) Rates For Singapore
GST is a tax on goods and services purchased or consumed locally. Here is a quick overview of GST and how it affects your business
What Is GST?
- Goods and Services Tax (GST) is a tax charged on the supply of goods and services made in Singapore and on the importation of goods into Singapore.
- The current rate is 5% (from 1 January 2004). The rate will be increased to 7% from 1 July 2007.
What Goods And Services Are Subject To GST?
- All goods and services are taxable and known as taxable supplies.
- However, some items are specifically exempt from GST by law. Exempted items include financial services and the sale or lease of residential properties.
When Is It Compulsory To Register?
- Your business must be registered to collect GST if your annual turnover exceeds or is likely to exceed S$1 million from the sale of taxable goods and services.
- This requirement may be waived if most of your goods or services are exported or supplied internationally ("zero-rated supplies").
Can I Choose To Register?
- You may also apply to the Comptroller of GST to collect GST voluntarily. Approval for voluntary registration is at the discretion of the Comptroller.
- Once approval is given, you must remain registered for at least two years.
Why Should I Register?
- Most businesses register for GST to claim back the GST incurred on their business purchases.
- When GST paid exceeds GST collected, the difference can be claimed from IRAS as a GST refund.
- When GST collected exceeds GST paid, you have to pay the difference to IRAS.
- When GST rate increase, it may make business sense to voluntarily register to collect GST in order to claim back GST incurred on business purchases.
Who Can Register?
- Sole proprietorships
- Limited liability partnerships
- Clubs, associations, management corporations or organizations
- Non-profit organizations
- Statutory boards
- Government bodies
Are There Any GST Schemes To Help Businesses?
To create a pro-enterprise environment, the Government has several assistance schemes relating to GST. These schemes generally help to ease the cash flow for businesses.
Goods and Services Tax (GST) Assistance Scheme
Get a grant to lower the costs involved in becoming a GST-registered trader. GST traders can collect GST and claim back for GST paid to suppliers.
Major Exporter Scheme (MES)
Major exporters can improve their cash flow by deferring GST payments on goods imported mainly for re-export out of Singapore.
Licensed Warehouse Scheme
Transform your warehouse into a licensed warehouse for storing dutiable goods. In licensed warehouses, duty and Goods and Services Tax (GST) are suspended until the goods are released for sale into Singapore.
Zero GST Warehouse Scheme (ZGS)
Businesses can transform their warehouses into zero-GST warehouses to minimise red tape and bypass the Goods and Services Tax (GST) process.
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