Goods and Services Tax compliance in Singapore, or GST, is the broad-based consumption tax that is levied on most goods and services in Singapore. By collecting GST on its sales, businesses play a crucial role in helping to generate revenue for the government of Singapore. This article will look at the basics of GST registration in Singapore, how it applies to local and foreign companies, and how businesses can manage their GST effectively.

When Is It Time to Register for GST?

You are liable to register for GST prospectively if your annual taxable turnover will exceed S$1 million, or retrospectively if you have exceeded this threshold already. The calculation of taxable turnover is based on the total value of standard-rated (GST at 8%) and zero-rated (GST at 0%) supplies made in the course or furtherance of business, including international services under Section 21(3), and excludes exempt supplies and out-of-scope sales.

Overseas entities, they are also able to opt for group registration, where they may appoint a Singapore agent – referred to as a section 33(2) agent – who will import and supply goods on their behalf in Singapore. The agent is responsible for claiming the GST paid on imports and accounting for GST on the subsequent supplies of imported goods made by them in Singapore.

In addition, GST-registered businesses are required to keep records of all transactions and to file GST returns on a quarterly basis. These records include details of the GST collected from customers, as well as the GST incurred by them in the course of their operations (such as GST paid to suppliers). The implication is that a company with poor record-keeping is more likely to incur inaccurate or incomplete GST returns and therefore face penalties.