Does Singapore have GST (Goods and Services Tax)?

Singapore GST: The Basics

Goods and Services Tax (GST) is Singapore's consumption tax, equivalent to VAT in the UK, Europe, and Australia. It applies to supplies of goods and services made in Singapore by GST-registered businesses, as well as goods imported into Singapore.

Current Rate: 9%

The GST rate increased from 7% to 8% on 1 January 2023, and then from 8% to 9% on 1 January 2024. The 9% rate is currently the standard rate for all standard-rated supplies. These two increases were pre-announced in the 2022 Singapore Budget and implemented on schedule.

Who Must Register for GST

Registration is mandatory when a business's taxable turnover (the value of standard-rated and zero-rated supplies, excluding exempt supplies) exceeds S$1 million in the preceding 12 months (retrospective basis), or when a business can reasonably expect taxable turnover to exceed S$1 million in the next 12 months (prospective basis). Voluntary registration is available for businesses below the threshold; this may be advantageous if the business has significant input GST to recover.

GST F5 Return Filing

Registered businesses file a GST F5 return each quarter via the IRAS myTax Portal. The quarterly periods and due dates are: January to March (due 30 April), April to June (due 31 July), July to September (due 31 October), and October to December (due 31 January). The return must be filed and net GST paid within one month of the period end. Late filing attracts penalties of S$200 per month, and late payment attracts a 5% surcharge.

How GST Works: Output and Input Tax

GST-registered businesses collect GST on their sales (output tax) and pay GST on their business purchases (input tax). The net amount (output tax minus input tax) is remitted to IRAS. If input tax exceeds output tax in a period (e.g., a business that mainly zero-rates its supplies), the business can claim a GST refund from IRAS.

Zero-Rated Supplies

Some supplies are zero-rated (0% GST), which means the business charges 0% on the sale but can still claim input tax on related costs. Key zero-rated categories include: exports of goods, international services (services contracted with overseas entities for use outside Singapore), and certain financial and insurance services provided to overseas persons.

Exempt Supplies

Exempt supplies do not attract GST, and input tax on costs attributable solely to exempt supplies cannot be recovered. Exempt supplies in Singapore include: the sale and lease of residential properties and certain financial services (such as bank lending, the issue of shares, and most insurance). Businesses with a mix of taxable and exempt supplies must apportion their input tax.

Reverse Charge on Imported Services

Since 1 January 2020, businesses that are not entitled to claim full input tax credits (typically partially exempt businesses such as financial institutions) must account for GST on imported services under the reverse charge mechanism. This levels the competitive playing field between overseas and local service providers.

Import GST

GST is levied on goods imported into Singapore. From 1 January 2023, the previous S$400 import GST relief for low-value goods imported via air or post was removed. All commercial goods are now subject to GST at the point of import, regardless of value. Overseas vendors supplying low-value goods to Singapore consumers must register for and charge GST if their annual sales to Singapore exceed S$100,000.

Practical Implications for Singapore Businesses

Most B2B businesses should register voluntarily for GST once they expect significant input tax (on equipment, professional fees, software licences) before hitting the mandatory threshold. Zero-rated exporters particularly benefit from voluntary registration. B2C consumer businesses need to consider whether charging 9% GST will affect their price competitiveness before voluntarily registering below the threshold.