Understanding GST Registration and Refund Requirements In Singapore

GST is a consumption tax which is one of the four pillars of Singapore’s tax structure.  The other three pillars of the tax structure are property, personal and corporate taxes. The current GST rate in Singapore is 7%. It is a tax that is incurred on consumer spending. 

GST was introduced in Singapore in 1994 April. Since then, the guidelines for GST have been amended and updated quite many times. This may be one reason that businesses are often confused while paying their GST. This is why the Singaporean Government maintains a check by performing GST audits whenever required. It is done to examine whether the businesses are paying the correct GST and charging the correct refund.

Morrison Management is known for its highly trained and professional staff in Singapore and the Philippines. They have 30 years of experience under the name of Raffles Corporate Advisory Services. This makes them extremely knowledgeable in the financial field. They can help you with the GST audit and keep you updated with the modifications in GST terms. They have received awards from various organizations and Institutes like PMC, Top SME achiever award, Business Eminence Award 2021, SiATP, etc. 

GST Audit

GST Audit is required to ensure that all records, documents, and returns are maintained by the taxable person. The process is implemented to verify correctly all turnovers claimed, taxes paid, refund initiated, input tax credit benefited, and to check that GST compliance is maintained. 

GST Registration 

Who pays GST Tax?

GST Registration is mandatory for businesses when –

  • When the turnover in a year exceeds a limit of $1 million. 
  • When there is the probability that the turnover will exceed $1 million in the next 12 months. 

Types of Registration 

Voluntary Registration

You register your business for GST voluntarily even if you know that your yearly turnover will not exceed $1 million. You will not get any credit for the input tax unless you don’t get your GST number registered. 

Exemption from Registration

Sometimes the business is also exempted from GST registration even when they exceed $1 million limits. This is a special condition is for zero-rated supplies to the business. Zero-rated supplies are goods that are charged at the rate of 0% GST. After approval, you’ll be exempted from collecting GST and filing for GST tax returns. 

Registration Procedure 

  • Apply online on the official website of Singapore. 
  • Look for a corporate services provider.
  • Submit the GST F1 form with all required documents. 

The government will process all documents to verify them. This will take around a week, post which you will get your GST registration number. The business should be registered for a minimum of two years with the government. 

GST Returns

All GST registered businesses will have to file for returns –

  • The GST returns must be filed electronically, monthly or quarterly. 
  • The GST tax returns and the payment are due one month from the end of the GST accounting period. 
  • Even if there is no transaction during the financial year, the business will still have to file for returns. 

It is necessary to understand all aspects of GST before launching a business in Singapore. To avail, all benefits file your GST returns at right time and seek the help of a professional.