Singapore GST Rates: Everything You Need to Know

Singapore’s Goods and Services Tax (GST) is a value-added tax levied on most goods and services provided in the country. For businesses operating in Singapore, understanding GST rates, registration requirements, and compliance obligations is essential. This guide provides a comprehensive overview of Singapore GST rates and their implications for businesses.

What is GST?

Goods and Services Tax (GST), also known as a value-added tax (VAT), is a consumption tax applied to most goods and services in Singapore, as well as the importation of goods. Businesses registered for GST act as tax collectors, charging GST on behalf of the Inland Revenue Authority of Singapore (IRAS).

Current GST Rates in Singapore

1. Standard GST Rate

As of January 1, 2024, the GST rate in Singapore is 9%.

2. Zero-Rated Supplies

Certain goods and services are taxed at 0%, such as:

• Exported goods
• International services (e.g., international transport)

Key GST Milestones in Singapore

• January 1, 2023: GST increased from 7% to 8%.
• January 1, 2024: GST increased to 9%, completing the phased adjustment.

Who Needs to Register for GST?

1. Mandatory Registration

Businesses with an annual taxable turnover exceeding S$1 million must register for GST.

2. Voluntary Registration

Businesses below the threshold can opt for voluntary registration if they frequently deal with GST-registered clients or export goods and services.

What are Taxable and Non-Taxable Supplies?

Taxable Supplies

• Most goods and services provided in Singapore
• Importation of goods into Singapore

Exempt Supplies

• Financial services
• Sale or lease of residential properties
• Importation and local supply of investment-grade precious metals

Benefits of GST Registration

• Input Tax Credits: Claim GST paid on business expenses and purchases.
• Enhanced Credibility: Being GST-registered enhances your business's standing with customers and suppliers.
• International Trade Benefits: Exported goods and international services are zero-rated, reducing costs for businesses engaged in global trade.

GST Compliance Requirements

1. Filing GST Returns

GST-registered businesses must file GST returns quarterly via IRAS's myTax Portal. Accurate filings must be submitted within one month after the end of the accounting period.

2. Issuing Tax Invoices

Provide tax invoices to clients for taxable supplies made.

3. Record Keeping

Maintain accurate records of all business transactions for at least five years.

4. Adjusting to GST Rate Changes

Update accounting systems and pricing to reflect GST rate changes promptly.

GST Penalties for Non-Compliance

• Late Filing Fees: Up to S$200 for each month of delay (up to S$10,000).
• Incorrect Returns: Fines and penalties of up to 200% of the underpaid tax.
• Failure to Register: A penalty of 10% of the GST due and backdating of GST liability.

How Apexia Corporate Advisory Can Help

Navigating Singapore's GST system can be complex, especially with recent changes. At Apexia Corporate Advisory, we offer:

• GST Registration Assistance: Assess your GST obligations and handle the registration process with IRAS.
• Compliance Management: Ensure accurate and timely filing of GST returns.
• Advisory Services: Provide guidance on GST-registered pricing strategies and input tax claims.
• GST Audit Support: Assist in preparing for IRAS audits and resolving compliance issues.

Contact us today to learn how we can simplify GST compliance for your business.