Overview of GST

The current GST rate in Singapore is 9%. Broadly, GST-registered businesses must charge GST at the standard rate of 9% on sales of goods and services made in Singapore. Goods that are exported and international services are zero- rated. The provision of certain financial services, the sale and lease of residential properties, and the importation and local supply of investment precious metals are exempted from GST.

GST registration

It is compulsory to register for GST if the taxable turnover (includes standard-rated and zero-rated supplies) of a business :

• has exceeded S$1 million at the end of the calendar year; or
• is expected to exceed S$1 million in the next 12 months.

A business may also be liable for GST registration under the reverse charge regime if it procures services/ goods from overseas and it is not entitled to claim full input tax even if it is GST registered.

A business may register for GST voluntarily even if its annual taxable turnover is lower than $1million. However, the costs (including administrative costs) and benefits should be considered before voluntary GST registration.

A business may apply for exemption from GST registration if the taxable supplies it makes can be wholly zero-rated or substantially zero-rated.

A business which is required to be registered for GST but did not do so, may have its GST registration backdated to the time when the liability to register arose. In such a case, business will be required to account for GST on its past supplies even though it did not collect the GST from its customers.