Key takeaways
- Singapore GST rate: The standard GST rate is 9%, while a 0% rate applies to exports and international transport services.
- Registration threshold: Businesses with annual taxable turnover over SGD 1 million must register for GST via the IRAS online portal.
- Filing & penalties: GST returns are filed quarterly, and late filings or payments can result in financial penalties and additional interest charges.
Expanding your business to Singapore involves understanding its version of Value Added Tax (VAT), known as Goods and Services Tax (GST). This guide will provide you with essential insights into the Singapore GST framework, helping you to effectively manage this aspect of your business operations in Singapore.
What is the Singapore GST rate?
The Singapore GST system is characterized by simplicity, with a standard GST rate of 9% applied to most goods and services. There is also a 0% Singapore GST rate, which applies to specific goods and services.
Registering for GST in Singapore
The GST registration threshold in Singapore is SGD 1 million in annual taxable turnover. Businesses exceeding this threshold must register for Singapore GST. Those below may opt for voluntary registration, which allows them to reclaim any input GST they may be due.
Registration can be done electronically through the Inland Revenue Authority of Singapore (IRAS) website. Once the application has been submitted, businesses should receive their Singapore GST number within three weeks.
Fiscal representative in Singapore
A foreign company operating in Singapore must appoint a GST fiscal representative who will be jointly responsible for ensuring compliance with Singapore’s tax laws.
Singapore GST return filing and penalties
The majority of businesses are required to file a Singapore GST return every quarter. The accounting periods and due dates are as follows:
- January to March - filing and payment deadline is April 30
- April to June - filing and payment deadline is July 31
- July to September - filing and payment deadline is October 31
- October to December - filing and payment deadline is January 31
Singapore GST returns must be submitted electronically through myTax Portal.
Late submission of a GST return will result in a penalty of SGD 200 with a further SGD 200 for every month a return is not filed, up to a maximum of SGD 10,000. A 5% penalty is imposed on unpaid Singapore GST, with additional penalties for continued non-compliance possible.
Reverse charge in Singapore
The reverse charge mechanism applies to imported services and goods by GST-registered businesses and non-GST-registered entities under specific conditions. This system requires the recipient, rather than the supplier, to account for the GST on these imported services or goods.
Frequently asked questions
What is the current GST rate in Singapore?
As of 2024, the standard GST rate in Singapore is 9%, applied to most goods and services. A 0% GST rate applies to exports and international passenger transport.
When do I need to register for GST in Singapore?
You must register if your annual taxable turnover exceeds SGD 1 million. Businesses below this threshold may register voluntarily to reclaim input GST on business expenses.
How do I register for GST in Singapore?
GST registration is completed online via the Inland Revenue Authority of Singapore (IRAS) website. Most businesses receive their GST registration number within three wee
Do foreign businesses need a fiscal representative in Singapore?
Yes. Foreign companies are required to appoint a GST fiscal representative who is jointly responsible for ensuring compliance with Singapore’s tax obligations.
How often must GST returns be filed in Singapore?
Most businesses file quarterly GST returns through myTax Portal, with deadlines on the last day of the month following each quarter (e.g., Q1 deadline: April 30).
