subject: What You Should Know About Singapore Gst Service [print this page] Goods and Services Tax (GST) is a tax charged on the supply of goods and services manufactured and produced in Singapore and on the importation of goods to Singapore, which is implemented on the current rate of 7%.
Similar to Value Added Tax, Goods and Services Tax (GST) is a form of consumption tax. It was implemented on April 1, 1994 in Singapore and was used as a guide on the UK VAT legislation and New Zealand legislation.
The government body responsible for the implementation and control of GST is the Inland Revenue Authority of Singapore (IRAS). GST is applied on all goods and services except for financial services and the sale or lease of residential properties. Just like business registration and incorporation, there is also a need to register your business for GST and this is the reason why there is Singapore GST service available in the country.
Below are the major reasons why there is a need to register for GST:
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 rate increase, it may make business sense to voluntarily register to collect GST in order to claim back GST incurred on business purchases.
The following can register for GST:
Sole proprietorships
Partnerships
Limited Liability partnerships
Companies
Clubs, associations, management corporations or organizations
Non-profit organizations
Statutory boards
Government bodies
Moreover, these are the basic information about Goods and Services Tax:
A business is required to register 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").
Sole proprietorships, partnerships, limited liability partnerships, companies, clubs, associations, management corporations or organizations, statutory boards and government bodies can register for GST.
There are different GST schemes made available for entrepreneurs:
Goods and Services Tax Assistance SchemeGet 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 SchemeTransform 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 minimize red tape and bypass the GST process.
