What is GST (Goods and Services Tax)?
Singapore's value-added tax levied at 9% on most supplies of goods and services made by GST-registered businesses. Registration is mandatory once taxable turnover exceeds S$1 million.
Current Rate (Year of Assessment (preceding-year basis))
9% (raised from 8% on 1 January 2024)
Example
A Singapore consultancy billing S$100,000 in services must charge S$9,000 GST to its customers, collect it, and remit it to IRAS after offsetting any input tax paid on business expenses.
How GST (Goods and Services Tax) works in Singapore
**Singapore GST Overview**
Goods and Services Tax (GST) is Singapore's consumption tax, equivalent to VAT in other jurisdictions. The rate increased from 8% to 9% on 1 January 2024, following the earlier increase from 7% to 8% on 1 January 2023.
**Registration Threshold**
A business must register for GST if its taxable turnover exceeds S$1 million in the preceding 12 months (retrospective basis), or if it can reasonably expect to exceed S$1 million in the next 12 months (prospective basis). Voluntary registration is permitted for businesses with lower turnover.
**GST F5 Return Filing**
GST-registered businesses must file a GST F5 return quarterly. The return is due within one month of the end of each prescribed accounting period. Filing periods are typically: January to March (due April 30), April to June (due July 31), July to September (due October 31), October to December (due January 31). Filing is done via myTax Portal.
**Zero-Rated Supplies**
Certain supplies are zero-rated (taxed at 0%), meaning GST is charged at 0% but the business can still claim input tax credits. Zero-rated supplies include: exports of goods, international services (services contracted with overseas clients), and specific financial services rendered to overseas persons.
**Exempt Supplies**
Exempt supplies do not attract GST, and input tax on costs attributable to exempt supplies cannot be recovered. Exempt supplies include: the sale and lease of residential properties, certain financial services (such as lending, insurance), and the import and supply of investment precious metals.
**Reverse Charge**
Since 1 January 2020, businesses that are not entitled to full input tax credits (partly exempt businesses) must account for GST on imported services under the reverse charge mechanism. This prevents offshore service providers from having a tax advantage over local providers.
**Import GST (IGST)**
GST is generally levied on goods imported into Singapore. Importers pay IGST at the point of customs clearance. From 1 January 2023, the import GST relief threshold was removed for low-value goods imported via air or post, making these subject to GST.
**Penalties for Late Registration or Filing**
Failing to register when required attracts penalties based on the GST that should have been collected. Late filing penalties start at S$200 per month of delay.
Related terms
Singapore taxes resident companies at a flat rate of 17% on chargeable income. New companies benefit from the Start-Up Tax Exemption (SUTE), and all qualifying companies can access Partial Tax Exemption.
Tax withheld by Singapore companies on certain payments to non-resident companies or individuals. Key rates: royalties 10%, interest 15%, technical service fees 17%. No withholding tax on dividends paid by Singapore companies.
The most common business structure in Singapore. A private company limited by shares, requiring at least one director ordinarily resident in Singapore, at least one shareholder, and minimum S$1 share capital. Incorporated via ACRA's BizFile+ portal.
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