Navigating the company GST registration Singapore can feel overwhelming, especially if you're new to the tax process. However, understanding the steps involved and knowing what is required can simplify the process significantly. Whether you're launching a new venture or growing an established business, registering for Goods and Services Tax (GST) is a key requirement for many businesses that meet specific criteria. In this blog, we will guide you through the entire Singapore company GST registration process, from determining your eligibility to completing the final step of GST filing.
Understanding GST and Its Importance for Businesses in Singapore
GST, or Goods and Services Tax, is a consumption tax applied to goods and services in Singapore. As of now, the GST rate is 8%, but this rate can change, so it's important to check the current rate on the official government website. Companies with an annual turnover exceeding S$1 million over the past 12 months are required to register for GST. Once registered, your company must charge GST on the taxable goods and services it provides. Additionally, you can reclaim the GST paid on business-related purchases. This registration is essential for maintaining compliance with Singapore’s tax regulations.
Step 1: Determine If Your Company Needs GST Registration
Before starting the company GST registration in Singapore, you need to confirm whether your business meets the registration requirements. According to the Inland Revenue Authority of Singapore (IRAS), GST registration is mandatory if:
- Your business has a taxable turnover exceeding S$1 million in the last 12 months.
- You reasonably expect your business to exceed the S$1 million turnover threshold in the coming 12 months.
If your business doesn’t meet this threshold, you may still voluntarily register for GST. Voluntary registration can be beneficial if you plan to claim GST credits on your business purchases or wish to enhance your company’s credibility with clients.
Step 2: Prepare the Necessary Documents
Once you confirm that your business qualifies for Singapore company GST registration, you must gather the necessary documentation to complete the process. Typically, you will need the following:
- Company registration details: A copy of your company’s business profile from ACRA (Accounting and Corporate Regulatory Authority) or the most recent corporate documents.
- Financial statements: Proof of your taxable turnover, such as your business’s financial statements.
- Business activity details: A description of your business operations so IRAS can determine the types of goods and services you provide.
Ensure all the documents you provide are accurate and up-to-date to prevent delays in your application.
Step 3: Registering for GST with IRAS
To initiate the company GST registration in Singapore, you must apply through the Inland Revenue Authority of Singapore (IRAS) online portal. Follow these steps:
- Create an IRAS Account: If you don’t already have an account with IRAS, visit their website and sign up for one. You will need an IRAS account to submit your application and handle GST-related matters.
- Complete the GST Registration Form: The form will ask for detailed information about your company, including your expected taxable turnover, the nature of your business, and details about your directors and shareholders. Be sure to provide accurate information to avoid complications in the process.
- Submit Your Application: After filling out the form, submit your application through the IRAS e-Services portal. IRAS may request additional documents if necessary.
Once your application is approved, you will receive a GST registration certificate, which will include your company’s unique GST registration number.
Step 4: Understand Your Responsibilities After GST Registration
After successfully completing your Singapore company GST registration, you must comply with several ongoing responsibilities. The most important of these is regularly filing your GST returns, which can be done either quarterly or annually, depending on the size of your business.
Step 5: GST Filing Singapore
As a GST-registered business, you are required to file GST returns to IRAS. This process involves reporting the GST you’ve collected on sales (output tax) and the GST you’ve paid on purchases (input tax). If your input tax is greater than your output tax, you can claim a refund from IRAS.
The GST filing in Singapore process typically follows these steps:
- Determine Your Filing Period: Most businesses file their GST returns quarterly. However, businesses that meet specific criteria may be eligible to file annually. Your filing period will be determined based on your company’s turnover.
- Prepare Your GST Returns: At the end of each filing period, you need to calculate the GST collected and the GST paid. Keep detailed records of all transactions, as IRAS may audit your filings or request supporting documents.
- Submit Your GST Returns: You must submit your GST returns online via the IRAS portal by the due date. Failure to submit on time may result in penalties or fines.
- Make the Payment: If your output tax exceeds your input tax, you will need to pay the difference to IRAS. Payments can be made directly through the IRAS payment portal.
- Claim GST Refund: If your input tax is higher than your output tax, you may be eligible for a refund. Ensure your records are accurate and submitted on time to facilitate a smooth refund process.
Step 6: Ongoing Compliance and Record-Keeping
To remain compliant with the GST filing Singapore requirements, it’s essential to keep accurate records of all your GST transactions. These records must be retained for at least five years and should include:
- Tax invoices for both sales and purchases
- Delivery orders
- Contracts
- Bank statements showing GST payments
Failing to maintain these records could cause issues during audits or compliance checks. By regularly reviewing and updating your records, you can ensure that your GST filings remain accurate and hassle-free.
Step 7: De-registration of GST
If your business’s taxable turnover falls below S$1 million for the past 12 months, and you do not anticipate it exceeding this threshold in the upcoming 12 months, you may be eligible to de-register for GST. However, de-registration is not automatic; you must apply to IRAS to remove your company from the GST register.
Conclusion
Completing the company GST registration in Singapore is a critical step for businesses that exceed the taxable turnover threshold. By following the steps outlined above, you can ensure that your business complies with Singapore’s GST laws, stays on top of its GST filing in Singapore, and avoids any potential penalties. If you’re unsure about any aspect of the process, it’s highly recommended to seek assistance from professionals like WZ WU & PARTNERS, who can guide you through the complexities of GST registration and filing, ensuring that your business remains compliant and efficient.