Startup owners, founders, and C-suite from around the globe who want to set up their business in Singapore must know the country’s taxation system basics. One important taxation law is the Goods and Services Tax (GST). Implemented in 1994 under the Inland Revenue Authority of Singapore (IRAS), the Singapore Goods and Services Tax (GST) Act is seen as a way to provide steady revenue for the government while keeping personal and corporate income tax rates at a relatively low rate.

Let us delve deeper into the topic.

What Is GST Registration in Singapore?

Goods and Services Tax (GST) is a consumption tax levied on almost all goods and services supplied in Singapore. This tax generates revenue for the government. Businesses meeting specific revenue thresholds or registering voluntarily must apply for GST registration with the Inland Revenue Authority of Singapore (IRAS).

The tax rate is calculated based on the selling price of products and services provided by GST-registered enterprises. These enterprises serve as agents who collect the tax on behalf of the government.

Upon successful registration, businesses receive a GST registration number and must collect GST from their customers and remit it to the IRAS.

Who Needs to Register for GST?

GST registration in Singapore is mandatory for businesses that:

• Have a taxable turnover exceeding SGD 1 million in the past 12 months (retrospective basis) or expect to exceed SGD 1 million in the next 12 months (prospective basis).
• Are involved in the importation of goods into Singapore and wish to claim full input tax credits.
• Are an overseas supplier or a local overseas electronic marketplace vendor to businesses in Singapore (this applies to overseas service providers under the Overseas Vendor Registration scheme).

Businesses not meeting these thresholds may still opt for voluntary GST registration if it benefits their operations.

What Are the Benefits of GST Registration?

Being registered offers several benefits, including informing buyers that your company is established and of a specific size. It also lowers the cost of business since you’re entitled to GST Singapore refunds. It’s important to remember that the Goods and Services Tax only applies to consumption, meaning that savings and investments are not taxed. This encourages people to invest more.

IRAS GST registration in Singapore offers the following advantages:

• Improved Business Credibility – A GST-registered business is perceived as more established, credible, and reputable.
• Claiming Input Tax Credits – Businesses can claim input tax on goods and services used for their business.
• Better business relations – International suppliers and B2B customers often prefer dealing with GST-registered entities.
• Compliance with Tax Regulations – Staying compliant ensures smooth operations and avoids penalties.
• Better Financial Management – Businesses can track tax collection and payments more efficiently.
• Access to Larger Contracts and More Business – Some government tenders and corporate contracts require GST registration as a prerequisite.

However, registering comes with an administrative burden that is difficult to handle. You must understand the intricacies or hire an experienced accountant, which may not come cheap. Additionally, increasing the selling price of your goods and services may impact the buying power of your customers, especially lower-income groups.

How To Register for Singapore’s GST?

Businesses must apply for GST in Singapore through the IRAS e-Services portal to register for GST. The registration process involves:

• Logging into myTax Portal – Businesses must access IRAS’s online system using their CorpPass.
• Completing the GST Registration Form and other Supporting Documents – You must submit a Singapore Goods and Services registration form (GST F1) and the necessary supporting documents to the tax authority. In the case of partnerships, an additional form (GST F3) giving details of all the partners must also be submitted. This includes company information, goals, business structure, and estimated turnover.
• Awaiting Approval – IRAS reviews applications and may request additional details before granting GST registration.

How Long It Takes for GST Registration

The standard processing time for GST registration in Singapore is approximately 10 working days. However, applications that require additional verification or supporting documents may take up to 30 days.

GST Registration Requirements in Singapore

Documents Required for Company GST Registration

To complete the GST registration process, businesses must submit:

• Latest copy of the ACRA Business Profile
• Financial statements or income projections
• Copy of contracts or invoices to support revenue claims
• Details of directors, partners, or sole proprietors
• Business Transfer document (if you have taken over the business from a GST-registered business)
• Any other supporting documentation requested by IRAS

How to Check GST Registration Status

To perform a GST registration check and verify the GST registration number of a business, follow these steps:

• Visit the IRAS website.
• Navigate to the GST Registered Business Search tool.
• Enter the business name, GST registration number, or unique entity number (UEN)
• Click Search to retrieve the registration status.

Common GST Registration Mistakes to Avoid

• Incorrect Revenue Calculation – Failing to assess revenue accurately can lead to registration delays or penalties.
• Late Registration – To avoid penalties, businesses must register promptly upon meeting the revenue threshold.
• Incomplete Documentation – Missing documents can delay approval.

On becoming GST-registered:

• Non-Compliance with IRAS Guidelines – Businesses must adhere to GST reporting and filing obligations.
• Failure to Display GST Registration Number – The GST number must be included on all invoices and official documents.
• Not Keeping Proper Records – Businesses must retain GST-related records for at least five years.

Difference Between GST-Registered and Non-GST-Registered Businesses

Feature	GST-registered Business	Non-GST-Registered Business
GST Collection	Must charge GST on taxable supplies	Does not charge GST
Input Tax Claims	Can claim GST on business expenses	Cannot claim GST
Compliance Requirements	Must file GST returns regularly	No GST filing required
Business Credibility	Often viewed as more reputable	May have limited appeal to larger clients

IRAS GST Registration: Key Guidelines

• Stay Updated on Singapore GST Rates – The current Singapore GST rate is 9% (as of 2024).
• Maintain Proper Records – Businesses must keep invoices and receipts for at least five years.
• File GST Returns Promptly – Businesses must submit GST returns via the myTax Portal every quarter.
• Understand Exempt and Zero-Rated Supplies – Some goods and services may be exempt or zero-rated.
• Comply with Penalty Regulations – Late submissions or inaccurate reporting may lead to penalties.
• Use Proper Invoicing Practices – GST-registered businesses must issue tax invoices with their GST registration number.

Conclusion

GST registration in Singapore is essential for businesses that meet the revenue threshold or wish to enjoy the benefits of tax input claims. While the registration process is straightforward, ensuring compliance with IRAS guidelines is crucial for smooth operations. Businesses should stay informed about Singapore GST rates, filing deadlines, regulatory mandates, and changes in GST laws to avoid penalties.

If you plan to expand your business in Singapore, obtaining GST registration can enhance credibility, facilitate better financial management, enable you to access different benefits, and improve access to more enormous business opportunities.

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