Understanding GST services in Singapore is crucial for business success. Nearly all goods and services in Singapore, as well as imported goods, are subject to the Goods and Services Tax (GST), a broad-based consumption tax. Residential property sales and leases are one example of a transaction that is GST-exempt.

Similar to VAT (Value Added Tax) in other nations, Singapore’s GST maintains a very low rate. Businesses must get ready early to remain compliant in 2025 and beyond, as GST is currently at 8% and will increase to 9% in 2024.

Understanding GST Supplies: What Every Business Needs to Know

According to GST regulations, supplies typically fall into one of three primary categories when assessing a company’s turnover:

1. Standard-Rated Materials

  • These are products and services that are sold in Singapore and are subject to GST. It is legally required that you include GST in your sales if you are registered for GST.

2. Supplies with a zero rating

  • These consist of international services and goods exports. These transactions still count toward your taxable turnover even though GST is not applied.

3. Out-of-Scope Supplies

  • Sales where goods move directly from one overseas country to another without touching Singapore are considered out-of-scope and are not subjected to GST. These do not count towards your GST registration threshold.

GST Registration in Singapore: When Is It Mandatory?

Compulsory GST Registration

You must register for GST if:

  • Your taxable turnover exceeds SGD 1 million at the end of any calendar quarter (March, June, September, or December) and over the last 12 months.
  • You reasonably expect your taxable turnover to exceed SGD 1 million in the next 12 months.

Taxable turnover includes standard-rated and zero-rated supplies but excludes out-of-scope transactions.

Failing to register on time could lead to significant penalties.

Voluntary GST Registration

If voluntary registration helps your business, you may decide to do so even if your turnover is less than SGD 1 million. But there are restrictions:

  • You have to maintain your GST registration for at least two years.
  • For all GST-related payments and refunds, you must register with GIRO.

Key Considerations for GST Registration

Security Deposit:

  • Businesses with a history of tax defaults, or directors linked to such businesses, may be asked to furnish a security deposit during registration.

Penalties for Late Registration:

  • Failure to register within 30 days of becoming liable can result in:
    • A fine of up to SGD 10,000
    • A 10% penalty on the outstanding GST amount

Staying Compliant with GST Rules in 2025

Pre-Registration GST Claims

  • Since July 1, 2015, companies that purchase goods and services within six months of registering for GST are eligible to claim GST incurred as long as the goods are still being held for sale or use.

Price Display Regulations

  • Businesses that are GST-registered are required to display prices that include GST as of April 1, 2015. IRAS may impose penalties for noncompliance.

Annual Review of GST ASK (Assisted Self-Help Kit)

IRAS’s GST ASK program benefits companies in the following ways:

  • Find and fix previous GST filing mistakes
  • Continue to be highly compliant
  • Access GST programs such as the Major Exporter Program.

Companies can hire outside experts for a comprehensive audit or use Accredited Tax Advisors (ATA-GST) or Accredited Tax Practitioners (ATP-GST) to carry out the ASK Annual Review internally.

To guarantee complete compliance, Sandhurst Consultancy’s ATA-GST certified experts can help you with the GST registration, filing, and GST ASK procedures.

Partner with Sandhurst Consultancy for Expert GST Services

Sandhurst Consultancy is a reputable GST consultant in Singapore that provides end-to-end GST services for large corporations, SMEs, and startups.

Our skilled staff makes sure your company remains compliant, penalty-free, and ahead of regulatory changes in 2025 and beyond, whether you need assistance with GST registration, pre-registration claims, GST filing, or a GST audit.

Let us handle the GST hassle so you can concentrate on expanding your company.

Conclusion

It can be difficult to navigate Singapore’s GST laws, particularly in light of the impending changes to the GST rate. However, Sandhurst Consultancy’s professional advice can help your company maximize tax efficiencies while maintaining complete compliance.

For businesses in 2025 and beyond, our team’s dependable, current advice and all-encompassing support will make GST compliance simple and stress-free.

Ready to simplify your GST journey? Get in touch with Sandhurst Consultancy today!

Frequently Asked Questions (FAQ)

Q1. What is the current GST rate in Singapore?

As of now, GST in Singapore is 8%. It is set to increase to 9% from January 1, 2024.

Q2. When do I need to register my business for GST?

You must register if your taxable turnover exceeds SGD 1 million in the past 12 months or is expected to exceed it in the next 12 months.

Q3. Can I claim GST on expenses incurred before registration?

Yes, you can claim GST on goods and services acquired within six months before registration, subject to IRAS conditions.

Q4. What happens if I fail to register for GST on time?

Late registration may lead to a fine of up to SGD 10,000 and a 10% penalty on the owed GST.

Q5. How can Sandhurst Consultancy help with GST compliance?

Our GST experts guide you through GST registration, filing, audits, and compliance reviews, ensuring you avoid penalties and optimize your tax position.