Singapore GST Registration Requirements

Roger Pay
Aug 13
4 min read

Singapore GST Registration Requirements

In Singapore, GST (Goods and Services Tax) registration is mandatory for businesses with a high sales volume. Here's a breakdown of the requirements and process:

Compulsory GST Registration

You are required to register for GST if your business's taxable turnover meets one of the following criteria:

Retrospective View: Your taxable turnover exceeded S$1 million in the last 12 months. In this case, you must apply for GST registration within 30 days of the end of that calendar year.
Prospective View: You can reasonably expect your taxable turnover to exceed S$1 million in the next 12 months. This is based on factors like signed contracts, confirmed purchase orders, or a significant upward trend in sales. You must apply for GST registration within 30 days after the date of this forecast.

What is Taxable Turnover?

Taxable turnover includes the total value of all standard-rated and zero-rated supplies made in Singapore. This encompasses local sales of goods and services, as well as exports and international services.

How to Register

The application for GST registration is submitted online via the Inland Revenue Authority of Singapore (IRAS) myTax Portal. You'll need to have the necessary supporting documents ready, such as business registration details and financial statements.

Responsibilities of a GST-Registered Business

Once registered, your business must:

Charge GST: Charge the current GST rate (9% as of January 1, 2024) on all standard-rated supplies.
Issue Tax Invoices: Issue proper tax invoices that include your GST registration number.
File Returns: File GST returns (Form GST F5) with IRAS, typically on a quarterly basis, within one month of the end of each accounting period.
Pay Tax: Pay the net GST owed to IRAS (Output Tax - Input Tax).
Maintain Records: Keep all business and accounting records for at least five years.

Consequences of Non-Compliance

Failing to register for GST when required can lead to significant penalties, including fines and interest charges. IRAS can also impose a late registration penalty.

Exemption from Registration

Under certain circumstances, you may be able to apply for an exemption from compulsory GST registration, even if your turnover exceeds S$1 million. This may apply if more than 90% of your total taxable supplies are zero-rated (e.g., exports) or if your input tax consistently exceeds your output tax.

Professional Fees

Hiring a professional to handle your GST matters in Singapore can be a wise decision, especially given the complexities and potential penalties for errors. Professional fees for GST services vary depending on the scope of services, and the volume of your business transactions.

Here's a breakdown of the professional fees you might encounter:

GST Registration

This is a one-time service to assist with the initial application to IRAS. The fees for this service range from S$200 to S$1,000. The cost can depend on whether the registration is compulsory or voluntary and the complexity of your business structure.

Ongoing GST Filing and Accounting Services

This is the most common service, where Bestar manages your GST obligations on a recurring basis. The fees for this are structured as a recurring charge, per quarter.

Quarterly GST Filing: Fees for preparing and submitting your quarterly GST return (Form GST F5) range from S$150 to S$500 per quarter, or more for businesses with a high volume of transactions. Bestar offers a lower rate for a very low volume of transactions, while charging a higher rate for a high volume of transactions.
Integrated Accounting Services: Bestar offers bundled packages that include bookkeeping, accounting, and GST filing. These packages can range from S$100 to over S$1,000 per month, with the price scaling based on the number of transactions and the complexity of the services required.

Other GST-Related Services

Applying for Exemption from GST Registration: If you meet the criteria for exemption (e.g., more than 90% of your sales are zero-rated), Bestar can assist with the application. The fee for this service is a one-time charge, in the range of S$300 to S$500.
GST Advisory and Consultation: If you need specific advice on GST matters, such as how to handle a particular transaction or prepare for an audit, you may be charged an hourly rate. This can vary significantly but can start from S$300 per hour.
Assistance with IRAS Audits: If your business is selected for a GST audit by IRAS, Bestar can help you navigate the process. Fees for this service are charged on an hourly basis.

Factors Affecting Professional Fees

Our professional fees for GST services can be influenced by several factors:

Volume of Transactions: The more transactions you have, the more work is involved in bookkeeping and calculating GST, leading to higher fees.
Complexity of Business: Businesses with multiple revenue streams, international transactions, or a mix of standard-rated, zero-rated, and exempt supplies will generally incur higher fees.
Type of Services: Basic filing is less expensive than comprehensive services that include bookkeeping, reconciliations, and advisory.

How Bestar can Help

Singapore GST Registration Requirements

A professional, such as Bestar, can provide several services to help businesses with their GST obligations in Singapore.

Key areas where Bestar can assist include:

GST Registration and Deregistration: We can assess your business's eligibility for GST registration (compulsory or voluntary), handle the application process, and assist with deregistration if your business ceases to meet the requirements.
GST Filing and Compliance: Bestar can help with preparing and filing accurate quarterly GST returns (Form F5) to the Inland Revenue Authority of Singapore (IRAS), ensuring timely submissions and avoiding penalties.
Input Tax Claims: We can guide you on what constitutes a valid claim for input tax, ensuring you maximize your claims while remaining compliant. We can also perform quality checks on your GST returns to catch errors early.
Advisory Services: We provide advice on the GST treatment of various business transactions, including those involving cross-border transactions and new business models. This can help you avoid costly mistakes.
IRAS Audits and Investigations: In the event of an IRAS audit, Bestar can manage the process, assist with replying to queries from IRAS, and help resolve any disputes. We can also assist with the voluntary disclosure of errors (Form F7).
GST Schemes: We can advise and assist in applying for various GST schemes (e.g., Major Exporter Scheme) that can help improve a business's cash flow.