{"id":106732,"date":"2024-01-03T14:57:16","date_gmt":"2024-01-03T06:57:16","guid":{"rendered":"https:\/\/premiatnc.com\/sg\/?p=106732"},"modified":"2024-10-17T16:35:05","modified_gmt":"2024-10-17T08:35:05","slug":"gst-registered-in-singapore","status":"publish","type":"post","link":"https:\/\/premiatnc.com\/sg\/blog\/gst-registered-in-singapore\/","title":{"rendered":"GST Registered In Singapore: How Is GST Handled in Singapore?"},"content":{"rendered":"\n
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If you run a business in Singapore, you must familiarise yourself with the Goods and Services Tax (GST).<\/p>\n\n\n\n

It may sound like a fairly complicated concept for those who have never heard about GST but the truth is that learning about GST will significantly affect how your business is run.<\/p>\n\n\n\n

Interested in learning more about this key aspect of running a business in Singapore? We\u2019ve got you covered here at Premia TNC, with professional consultants and experts for all your company incorporation needs.<\/p>\n\n\n\n

This article will focus on all the essential details that is required for a business to become GST registered in Singapore, including the definition, registration requirements, pros and cons, and more.<\/p>\n\n\n\n

What is GST?<\/h2>\n\n\n\n

GST, also known as Goods and Services Tax<\/a>, is a consumption tax levied on all products and services within the country. This tax also affects the importation of goods into the country.<\/p>\n\n\n\n

While Singapore authorities refer to this levy as GST, you may find it labelled as Value Added Tax (VAT) in other jurisdictions.<\/p>\n\n\n\n

The Goods and Services Tax is charged at 9% in Singapore.<\/p>\n\n\n\n

You\u2019ll be thrilled to know that the value of the GST is usually charged on products and services enjoyed by customers. As a result, the cost does not affect your company. Businesses only serve as collecting agents for the government. <\/p>\n\n\n\n

The Goods and Services Tax of Singapore was implemented in 1994. The current model was derived from the VAT system adopted in the UK and the GST system of New Zealand.<\/p>\n\n\n\n

In Singapore, the Inland Revenue Authority is responsible for administering, enforcing, assessing, and collecting GST on goods and services.<\/p>\n\n\n\n

The Goods and Services Tax is levied to reduce individual and corporate income tax rates<\/a> and create a steady source of income for the government. <\/p>\n\n\n\n

How does GST Affect a Singapore Company?<\/h2>\n\n\n\n

If your business is GST registered in Singapore, you\u2019ll need to include the price of this levy on your goods and services. After this, you\u2019ll be required to collect all the taxes paid and remit them to the government. <\/p>\n\n\n\n

For instance, if you\u2019ve rendered a service worth $500, the GST on this service will be $35. This means that the total payment that\u2019s due by the customer is $535.<\/p>\n\n\n\n

The customers will be required to pay the total sum of $535 to receive the service from your company.<\/p>\n\n\n\n

All the GST charged on customer purchases will be remitted to the Singapore Tax Authority through a periodically filing. <\/p>\n\n\n\n

It\u2019s essential to note that not all companies that are registered in Singapore are expected to charge GST automatically. To become a GST registered company in Singapore, you must meet certain conditions and apply to IRAS.<\/p>\n\n\n\n

After completing this process and with approval granted by IRAS, you can begin collecting and charging GST. <\/p>\n\n\n\n

What are the requirements to be GST registered in Singapore?<\/h2>\n\n\n\n

As mentioned earlier, not all businesses are required by the government to be a GST registered company in Singapore.<\/p>\n\n\n\n

GST is a unique type of levy; businesses are continuously required to reassess their need to register for GST.<\/p>\n\n\n\n

Here are two types of GST registration for corporations: voluntary and compulsory<\/a>. <\/p>\n\n\n\n

Compulsory Registration<\/h3>\n\n\n\n

Any company is required to register for GST under the following conditions; <\/p>\n\n\n\n