Goods and Services Tax (GST) is Singapore's broad-based consumption tax, charged on the supply of most goods and services in Singapore and on the import of goods. It works like value-added tax (VAT) elsewhere: GST-registered businesses charge GST on their sales (output tax) and generally recover the GST they pay on purchases (input tax), remitting only the net amount to the Inland Revenue Authority of Singapore (IRAS).
The current GST rate is 9%, with effect from 1 January 2024 (it was 8% in 2023 and 7% before that). Not everything is taxed the same way: exports of goods and international services are zero-rated (0%), while certain financial services, the sale and lease of residential property, and the supply of digital payment tokens are exempt from GST.
Because GST is ultimately borne by the end consumer, registered businesses effectively act as collection agents for IRAS. Whether your business must register, how much GST you can recover, and how you must invoice all depend on your GST status. If you are unsure how GST applies to your activities, Apexia can help you assess your position and stay compliant.