If you have plans to establish or expand your business in Singapore, understanding the Goods and Services Tax (GST) is one must-compliance aspect. For any business owner or SME looking to become a GST Registered Company Singapore, knowing the nitty-gritty of GST rules is imperative in order to remain compliant and build business integrity.

This handbook covers everything you must understand regarding GST registration in Singapore—from who must register and how to register to the advantages and disadvantages of being GST-registered.

What is GST in Singapore?

GST, or Goods and Services Tax, is Singapore’s equivalent of the value-added tax (VAT) employed in most other nations. It is being administered by the Inland Revenue Authority of Singapore (IRAS) and imposed on the consumption of goods and services. Even though businesses collect the GST, the actual burden falls on the consumer since it is being charged on the final selling price.

As of 2022, the GST rate is 7%, but it will increase to 9% by 2024—so it’s more crucial than ever that businesses prepare ahead of time.

Step-by-step GST Registration Process

Here is how to register your company with IRAS:

1. Choose the Type of Registration:

• Retrospective Registration: For those who have already passed the S$1 million mark.
• Prospective Registration: For those likely to reach it in the near future.

2. Take the IRAS e-Learning Course:

For voluntary registration, businessmen need to go through the “Overview of GST” course and pass a short test.

3. Submit the Application Online:

• Submit through IRAS website using CorpPass.
• Upload supporting documents (PDF, maximum 223kb).
• Voluntary applicants should also sign up for GIRO to enable GST payment and refund.

4. Receive Confirmation:

You will be notified by IRAS by email or SMS with your GST registration number and effective date of registration.

Special GST Registration Categories

• Group Registration: For businesses under the same corporate family.
• Joint Venture (JV) Registration: Whether or not the JV is ACRA-registered.
• Divisional Registration: For bigger businesses with autonomously operating divisions.

GST Filing and Compliance

Charging and Collection of GST:

After registration, your business has to:

• Price with GST included.
• Charge tax invoices to GST-registered buyers.
• Keep five-year records of transactions.

Filing GST Returns:

• Submit GST F5 returns every quarter, reporting total purchases, sales, GST collected, and input tax claims.
• Pay net GST one month from the close of every accounting period.
• Refunds, when due, are usually made in 30 days.

GST Schemes Supporting Business

• Tourist Refund Scheme: Recovers GST on purchases made by tourists.
• Cash Accounting Scheme: Ideal for small-scale businesses with turnover of less than S$1 million.
• Major Exporter Scheme (MES): Facilitates cash flow for export-oriented companies.
• Zero GST Warehouse Scheme: Allows businesses to keep goods in a GST-free warehouse.

Pros and Cons of GST Registration

Benefits:

• Increases business legitimacy and credibility.
• Makes it easier to expand to overseas markets.
• Grants access to IRAS support schemes.
• Indicates a good financial position as a GST Registered Company Singapore.

Drawbacks:

• More administrative burden because of rigorous filing norms.
• Higher price levels might influence price-conscious buyers.
• May have an impact on lower-income class consumers during inflationary periods.

Final Thoughts

Becoming a GST Registered Company Singapore is not just a regulatory process—it’s a strategic decision that can make your company’s brand more credible and financially compliant. Whether registration is compulsory or optional, effective knowledge and application of GST norms bring long-term prosperity to your organization.

Require professional assistance in GST registration and compliance?

Call Sandhurst Consultancy Pte Ltd—your reliable partner in Singapore company setup and compliance.