GST (Goods and Services Tax) is a broad-based consumption tax levied on almost all goods and services in Singapore, including imports. It was introduced on April 1, 1994 at 3%, and the current rate is 9% (as of 2024).
It applies to:
- Goods sold and consumed locally
- Imported goods and services
- Most business transactions (with some exceptions)
The purpose is to shift tax reliance from direct (like income tax) to indirect taxation, helping maintain lower personal and corporate income tax rates.
Categories of Supplies under GST
| Category | Description | GST Rate | Examples |
|---|---|---|---|
| Standard-Rated | Most goods/services sold locally | 9% | Retail, food & beverage, consultancy |
| Zero-Rated | Mainly exports and international services | 0% | Exported goods, international freight |
| Exempt | Certain financial services, residential property, precious metals, etc. | 0% | Home sales, bank services |
| Out-of-Scope | Transactions outside Singapore or not part of business activities | 0% | Overseas sales, private transactions |
Note：Only standard-rated supplies require businesses to charge and collect GST.
GST on sales (Output Tax) = 9% of the selling price
GST on business purchases (Input Tax) = Claimed to offset output tax
Formula:
GST Payable = Output Tax – Input Tax
If input tax > output tax, the business can get a GST refund from IRAS.
| Tax Type | Definition | Timing | Refundable? |
|---|---|---|---|
| Output | GST collected from customers | When selling goods/services | No (paid to IRAS) |
| Input | GST paid on purchases used for business | When buying goods/services | Yes (if eligible) |
What are GST Registration Rules？
| Requirement Type | Threshold | Notes |
|---|---|---|
| Compulsory | >S$1 million in taxable turnover | Past 12 months or expected next 12 months |
| Voluntary | Below threshold | Must commit to compliance for at least 2 years |
Note：Late registration may result in backdated GST payments + penalties.
- Only GST-registered businesses can charge GST.
- GST incurred on business-related purchases (with proper documentation) can be claimed.
- Not all expenses qualify – they must be directly related to business operations.
- Overseas Vendor Registration (OVR): Foreign companies selling to Singapore consumers may be required to register for GST.
- Sector-based schemes: E.g. Financial services often fall under exempt supplies.
- Permanent GST Voucher Scheme: Helps offset the impact of GST for lower-income households.
What are GST Filing Requirements？
| Task | Description |
|---|---|
| Return Filing | Quarterly (default) or Monthly (with IRAS approval) |
| Form | GST-F5 (main form for reporting and claiming GST) |
| Deadline | Within 30 days after accounting period ends |
| Payment | GIRO payment gives 15-day extension |
Note：Use accounting software to track GST and meet filing deadlines.
Different industries (like finance, property, digital services) may have tailored GST treatment:
- Financial services: Often GST-exempt
- Residential property: Sale and lease are exempt
- Digital payment tokens: Exempt from GST from 2020 onward
Whether your company needs to register for GST in Singapore depends on factors such as your revenue, business model, and target customers. To ensure compliance and avoid unnecessary costs, we recommend consulting our professional advisors. They can assess your situation and provide tailored guidance on GST matters.
