GST REGISTRATION SERVICES FOR BUSINESSES IN SINGAPORE

1. Compulsory GST Registration

Companies must register for GST if the taxable turnover is more than S$1 million at the end of the calendar quarter. Hence, company would have to constantly monitor their turnover for the past 12 months at the end of every calendar quarter and proceed promptly for GST Registration once the taxable turnover exceeds the aforementioned amount.

2. Voluntary GST Registration

For companies whose taxable turnover is less than S$1 million, they can voluntary opt to register for GST for their businesses. Registering for GST allow companies to pass on the tax burden to the consumers. This also enable them to claim back the GST in their purchases from their suppliers.

However, a company can only qualify for Voluntary GST Registration if their businesses fall in any of the following catergories:

• the business involves in making supplies that are taxable
• the business involves in making only out-of-scope supplies – sales of goods that are in transit hence do not enter Singapore.
• the business involves in making of supplies of financial services which can be zero-rated and are also international services.

Refer to IRAS – Qualifying for Voluntary Registration for more details.

Online courses for companies opting for Voluntary GST Registration

Manager or owner of the business must complete two online courses – “Registering for GST” and “Overview of GST” and pass the respective tests before submitting the GST application.

Exemption for the above mentioned online courses is allowed if company satisfy at least one of the following criteria:

• the director/ sole-proprietor/ partner of the company is managing existing GST-registered businesses hence has the relevant experience and
• knowledge of the duties and function of a GST Registered company.
• the person responsible in preparing the company’s GST returns is an Accredited Tax Advisers (ATA) or Accredited Tax Practitioners (ATP)
• the person who is appointed to prepare the company’s GST returns has completed both online courses within the last two years.
• benefit of registering for GST
• pass on the tax burden to the consumers

Registering for GST allows company to pass on the GST paid, on import of supplies or supplies bought from GST Registered suppliers, to the consumers. Hence, instead of absorbing the GST and affecting the profit margin, the company is in a way simply collecting the tax on goods and services on behalf of the Singapore’s tax authority – IRAS (Inland Revenue Authority of Singapore).

Tax Compliance

For businesses with taxable turnover of more than S$1 million, it is mandatory for the company to register for GST. Non-compliance would result in penalty.

Company branding and establishing credibility

Companies may opt for Voluntary GST Registration even if they do not need to do so. This create the impression that the company is very established – an annual turnover of more than S$1 million.

Companies with turnover nearing S$1 million

A GST Registered company is required to comply to certain duties and functions, hence it would be prudent to starting planning ahead so that the transition to a GST Registered company is a smooth one.

Let us assist you in the application process of registering GST for your business. We have a team of professionals experienced in all kinds of business registrations, corporate solutions and Accounting Services. Contact us for a non-obligatory consultation today.