Frequently asked questions on Singapore Goods & Services Tax (GST)

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
• Partnerships
• Limited liability partnerships
• Companies
• Clubs, associations, management corporations or organizations
• Non-profit organizations
• Statutory boards
• Government bodies

Are There Any GST Schemes To Help 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.