GST Services in Singapore
Accounting Consultancy Pte Ltd has a team of certified accountant to provide GST services in Singapore. Over the years, we have helped many SMEs and international clients in resolving their GST issues.
Do you know that from 1 April 2018, the late submission penalty of $200 is imposed immediately once the GST return is not filed. And, a further penalty of $200 will continue to be imposed for every completed month that the GST F5/F8 return is outstanding, till the maximum of $10,000. For this reason, many SMEs have outsourced their GST matters to us.
We are recognised as the top Accounting company in Singapore that has resolved many GST issues, ensure compliance and timely GST submission. As a result, our company has grown rapidly over the years, attaining many awards and certifications.
Why Choose Accounting Consultancy Pte Ltd
GST Must Knows
Overview of GST in Singapore
Goods and Services Tax or GST meaning is a broad-based consumption tax levied on the import of goods (collected by Singapore Customs), as well as nearly all supplies of goods and services in Singapore. In other countries, GST is known as the Value-Added Tax or VAT. The current GST rate is 7% in Singapore.
- GST registration can be compulsory or voluntary.
- GST registration is compulsory when :-
(1)Your taxable turnover for the past 12 months is more than $1 million; or
(2) You can reasonably expect your taxable turnover in the next 12 months to be more than S$1 million.
Once GST registered, a company must charge GST on taxable supplies and can claim input tax if claiming conditions are met.
We offer an assessment that determines the impact of GST registration on your company and customers. Based on the assessment, we will advise you on the optimum GST filing cycle for your company.
Our service also includes providing advice on compliance matters as well as any incentives provided by the government for voluntary registration.
In addition, we offer free GST filing for clients whom have signed up for our accounting services.
Type of Supplies
Generally, there is 4 types of supplies in Singapore
Standard-Rated Supplies (7% * GST)
Most local sales of goods and services fall under this category.
Zero-Rated Supplies (0% GST)
Exempt Supplies (GST is not applicable)
– Sale and rental of unfurnished residential property
– Importation and local supply of investment precious metals
– Financial services
Out-of-Scope Supplies (GST is not applicable)
– Sale where goods are delivered from overseas to another place overseas
– Private transactions
* A 2% rate hike from 7% to 9% is planned to be introduced sometime between 2021 and 2025, depending on Singapore’s economy, government spending and revenue from other taxes.
Time of Supply Rules
For most transactions, output tax will be accounted for based on the earlier of the following:
- When an invoice is issued
- When payment is received
Conditions for claiming input tax
To claim input tax, you must satisfy the following conditions:-
- You must be GST-registered;
- The goods or services must have been supplied to you or the goods have been imported by you;
- The goods or services are used or will be used for the purpose of your business;
- Local purchases must be supported by valid tax invoices addressed to you, or simplified tax invoices at the time of claiming the input tax;
- Imports must be supported by import permits which show you as the importer of the goods;
- The input tax is directly attributable to taxable supplies (i.e. standard-rated supplies and zero-rated supplies), or out-of-scope supplies which would be taxable supplies if made in Singapore;
- The input tax claims are not disallowed under Regulations 26 and 27 of the GST (General) Regulations.
Disallowed Input Tax Claims
Regulations 26 and 27 of the GST (General) Regulations do not allow the following expenses to be claimed as input tax:
- Costs and running expenses incurred on private registered motor cars;
- Expenses incurred on company cars of which the COE has been renewed or extended on or after 1 Apr 1998;
- Expenses incurred on rental cars hired for use on or after 1 Jul 1999;
- Club subscription fees (including transfer fees) charged by sports and recreation clubs;
- Benefits provided to the family members or relatives of your staff;
- Medical expenses incurred for your staff unless they are obligatory under the Work Injury Compensation Act or under any collective agreement within the meaning of the Industrial Relations Act;
- Medical and accident insurance premiums incurred for your staff unless the insurance or payment of compensation is obligatory under the Work Injury Compensation Act or under any collective agreement within the meaning of the Industrial Relations Act; and
- Any transaction involving betting, sweepstakes, lotteries, fruit machines or games of chance.
Quick tips on GST
(1) Input tax of private expenses, S-plated car related expenses is not claimable.
(2) Supplies can be grouped into 7% taxable supplies, 0% taxable supplies, exempted supplies and out-of-scope.
(3) Goods & services supplied in Singapore but consumed out of Singapore, are treated as 0% taxable supplies.
(4) For certain industries, special GST schemes are available to ease their business operation and cashflow. For example, Major Export Scheme for major exporter, GST Margin Scheme/Discounted Sale Price Scheme for motor trade.
(5) Input tax incurred before GST registration is claimable if claiming conditions are met.
(6) For voluntary GST registration, GST-registered status must remain for 2 years.