Comprehensive Insights: GST Registered Company In Singapore 

Understanding the tax landscape is crucial for successful businesses, especially concerning the Goods and Services Tax (GST) in Singapore. GST registered company in Singapore have a vital role in collecting and remitting this consumption tax. Exploring the responsibilities of GST registered businesses is essential for compliance, financial management, and overall business success. In this article, we will uncover the core responsibilities these businesses in the country must meet, offering insights valuable to both seasoned and new business owners about being a GST registered company in Singapore.

Key points about Goods and Services Tax (GST)

Being a GST registered company in Singapore means that you are responsible for collecting GST from your customers on products and services provided. As of January 1, 2024, the current Goods and Services Tax (GST) rate in Singapore will rise from 8% to 9%. Consequently, transactions involving the goods and services from GST-registered companies in 2023 will incur GST at the rate of 8%, while transactions occurring on or after January 1, 2024, will be subject to a GST rate of 9%.

In the year 2023, for a GST-registered company, upon selling a product priced at S$1,000, you are required to issue a tax invoice. This invoice should incorporate an 8% GST amount, totaling S$80, thereby resulting in a total invoice amount of S$1,080.

GST returns and payments are typically due one month after the end of the accounting period covered by the return. The frequency of filing GST returns is contingent on company conditions, with a common practice of filing quarterly. Upon filing, the company is obligated to remit the total GST collected to the Inland Revenue Authority of Singapore (IRAS) while submitting the GST returns. This process is part of the essential duties of a GST-registered company in Singapore, ensuring compliance with tax regulations.

Is GST registration necessary for a business in Singapore?

Businesses registered for GST are the ones liable to charge GST. Mandatory registration is for businesses exceeding an annual taxable turnover of S$1 million. However, those with revenues below this threshold can also choose to voluntarily register.

Filing for GST in Singapore

Once you hold GST registration from IRAS, it becomes your responsibility to ensure accurate and timely filing of GST returns. Using the MyTax portal, all GST returns must be filed within a month following each accounting period. Even if your business had no GST transactions, a ‘NIL’ GST return is still required. For those voluntarily filing GST, GIRO payment plans are utilized for GST payments, deducted on the 15th day of the month after the payment due date. For instance, if GST returns are due by December 31, 2022, the payment should be made by February 15, 2023.

Responsibilities of a GST registered company in Singapore

1. Account and invoice for GST on standard-rated supplies

As a GST registered business in Singapore, it is crucial to apply for and account for Goods and Services Tax (GST) on standard-rated supplies. These supplies encompass goods and services transacted within Singapore and are currently taxed at 8%. Notably, specific changes have occurred in the GST landscape:

• As a GST registered business in Singapore, it is crucial to apply for and account for Goods and Services Tax (GST) on standard-rated supplies. These supplies encompass goods and services transacted within Singapore and are currently taxed at 8%. Notably, specific changes have occurred in the GST landscape:
• From January 1, 2020, business-to-business (B2B) supplies of imported services follow the reverse charge regime, while business-to-consumer (B2C) supplies of imported digital services fall under the overseas vendor registration regime.
• From January 1, 2023, GST will be expanded to encompass business-to-consumer (B2C) sales, including imported low-value goods, and imported non-digital services.

2. Filing for GST returns

Ensuring compliance with GST regulations necessitates filing precise GST returns and promptly settling the tax dues. Consider these essential factors:

• File your GST returns via mytax.iras.gov.sg within one month after each accounting period concludes, even if no transactions require reporting.
• Late or non-filing of GST returns can lead to penalties of up to S$5,000 and potential imprisonment for up to 6 months, as it is considered an offense.
• Pay the tax due within one month of each accounting period’s end. If using a GIRO plan for GST payment, deductions are made on the 15th day of the month following the payment due date.
• Late or non-payment of GST incurs penalties, including a 5% penalty on the outstanding tax amount by the due date and additional penalties for tax overdue beyond 60 days.

3. Maintaining business and accounting records

For businesses registered under GST, maintaining accurate business and accounting records is essential. It is mandatory to keep these records for at least five years, even if your business ceases operations or deregisters with GST. Not only does this practice ensure compliance, but it also facilitates efficient business management and informed decision-making.

4. Update pricing inclusive of GST

When advertising or displaying prices for goods and services, it is a legal requirement to include Goods and Services Tax (GST) in the prices. If both GST-inclusive and GST-exclusive prices are shown, the GST-inclusive price must be displayed as prominently as the GST-exclusive price. Failure to comply with these standards may lead to fines of up to S$5,000.

5. Generate invoices reflecting the GST registration number

You must issue tax invoices or customer accounting tax invoices for your standard-rated supplies. If the total amount payable, including GST, is below S$1,000, you can issue a simplified tax invoice. Include your GST registration number on all tax invoices, simplified tax invoices, and receipts.

6. Responsibilities for voluntary registrants

Obligations include using GIRO for payments and refunds, keeping registration for at least 2 years, complying with GST responsibilities, providing taxable supplies within 2 years (if not initially), and meeting any additional IRAS-imposed conditions. Special terms apply to overseas vendor-pay-only regime businesses.

7. Responsibilities for mandatory registrants

Compulsory GST registered businesses must adhere to IRAS-imposed conditions to protect revenue. If posing a revenue risk or engaging in missing trader fraud, the Comptroller can cancel GST registration.

Managing business changes as a GST-registered company in Singapore

In addition to the mentioned obligations, as a GST registered company, you are required to inform the Comptroller about business-related changes within 30 days. These changes encompass alterations in the GST mailing address, modifications in the business constitution or ownership, adjustments in partners or their details, and amendments in partnership agreements, even among existing partners.

Steps for deregistering your business from GST

Upon deregistering from GST, whether previously registered as compulsory or voluntary, specific procedures must be followed. Following cancellation, GST accountability persists for business assets held on the final registration day under the following conditions:

• GST has been claimed on these assets.
• The total market value of the assets exceeds S$10,000.

These assets may encompass inventories, fixed assets, non-residential properties, and goods imported under various GST schemes.

Consequences of delayed or unsubmitted GST filing

When a business misses the GST return deadline, IRAS may take these actions:

• Issue an estimated Notice of Assessment (NOA) with a 5% late payment penalty on the estimated tax.
• Impose a penalty for late submission.
• Summon the responsible individual (such as a sole proprietor or director) to court.
• Issue a warrant of arrest.

How We Can Help

Premia TNC offers comprehensive assistance for your company, ensuring vigilant monitoring of issues and regulatory changes. Our services include overseeing annual revenue close to S$1 million, managing GST registration or deregistration processes, preparing, and submitting GST reports, and reviewing and reconciling GST records for company management accounts. This support alleviates your burden, allowing you to focus on your core business operations.

FAQs – GST Registered Company in Singapore