FAQ ON GOOD AND SERVICE TAX (GST) MATTERS
GST (Goods and Services Tax) is a tax on domestic consumption. The tax is paid whenever customers buy goods or services from GST-registered businesses.
GST was first introduced in Singapore on 1 April 1994. Effective from 1 Jul 2007, the GST rate is 7%. The table below shows the GST rate over the years.
|1 Apr 1994 to 31 Dec 2002||3%|
|1 Jan 2003 to 31 Dec 2003||4%|
|1 Jan 2004 to 30 Jun 2007||5%|
|1 Jul 2007 onwards||7%|
The onus is on the trader or businessperson.
You need not register for GST if your annual taxable supplies do not exceed S$1 million. However, you can apply for voluntary registration if your annual taxable supplies are below S$1 million or if you have not started making taxable supplies but expect them to exceed S$1million in the next 12 months.
Your voluntary registration is subject to the conditions that:
i. You make or intend to make taxable supplies; and
ii. You carry on a business and intend to make such supplies in the course or furtherance of that business.
After you have voluntarily registered for GST, you must remain registered for at least 2 years. The Comptroller may also impose other conditions on your GST registration.
Before you decide to apply for voluntary registration, it is advisable to consider carefully your ability to comply with all the responsibilities and obligations of a GST-registered person, and the costs you need to incur to comply with the GST law.
Points to note;
Increase in compliance cost (new accounting system, filing of GST returns and record keeping, etc.); Have to invest the time and resources to train staffs in accounting for GST; Heavy penalties for non-compliance (e.g., failure to file on time); Voluntary registration will inevitably increase in its sales prices (risk of losing price sensitive clients.
We provide taxation services to individuals, corporations, partnerships, clubs, associations etc. Our tax consultants are both qualified and experienced to deal with your tax compliance and tax planning issues. Our tax consultants will assist you to plan your tax affairs to minimize the incidence of tax and also to give you valuable advice on individual and cross border transactions.
Some of our tax services include:
- Tax compliance for companies, partnerships, sole proprietors, individuals;
- Filing of Estimated Chargeable Income (ECI);
- Assisting in the preparation of Income tax computation;
- Assistance in the submission of Tax Returns within the time frame;
- Corporate tax planning, review and restructuring ;
- Tax objections and appeal in respect of disputes on tax assessed;
- Assistance in payroll compliance and Form IR8A reporting;
- Individual tax planning;
- Advice on withholding tax, double tax agreements, etc.;
- Registration / advice on Goods and Services Tax; and
- Advice on other tax related matters.