Goods & Services Tax - An Overview

The Goods and Services Tax (GST) is a broad-based consumption tax levied on most goods and services in Singapore, including imports. As of 1 January 2025, the GST rate is 9%. Businesses with more than S$1 million in annual taxable turnover must register for GST. In fact, if it is foreseeable based on early trend that the turnover for the financial year will exceed S$1 million, registration for GST must be done asap. 

For businesses below the threshold of S$1 million, they may choose to register VOLUNTARILY to claim input tax credits and enhance their professional image with corporate clients. Once registered, they must stay GST-registered for a minimum of 2 years and keep a GIRO account for GST payment and refund.


There are 4 Types of output tax (GST) Supplies:

- Standard-Rated Supplies – Subject to 9% GST (e.g. most goods and services supplied locally).
- Zero-Rated Supplies – GST charged at 0% (e.g. exports of goods, international services).
- Exempt Supplies – No GST charged, and input tax generally cannot be claimed (e.g. financial services, sale/rental of properties, purchases of precious metals)
- Out-of-Scope Supplies – Transactions outside the scope of GST (e.g. third-country sales where goods do not enter Singapore, private transactions)

GST compliance goes beyond simply charging tax. It involves:

Timely and accurate GST return submissions (usually quarterly),
Proper issuance of tax invoices and recordkeeping,
Classification of supplies (standard-rated, zero-rated, exempt),
Claiming input tax correctly and within deadlines,
Staying up to date with IRAS requirements and changes (e.g. rate changes or e-invoicing mandates).

Input Tax & the conditions for claiming Input Tax

Being GST-registered in Singapore offers several advantages for businesses. One of the main benefits is the ability to claim input tax credits on goods and services purchased for business use, which helps reduce overall tax costs. GST registration also enhances a company's credibility, making it appear more established and trustworthy—this can be especially helpful when dealing with large corporations or government entities.

For businesses with an annual taxable turnover exceeding S$1 million, GST registration is mandatory, ensuring compliance with Singapore’s tax regulations. Additionally, GST-registered businesses can apply for various schemes offered by IRAS, such as the Major Exporter Scheme (MES) or the Import GST Deferment Scheme (IGDS), which can help ease cash flow and improve operational efficiency.

Exporters benefit from zero-rated supplies, meaning they can charge 0% GST on exports while still being able to claim input tax on related expenses. This structure supports cost-efficiency and competitiveness in international markets. Furthermore, many clients prefer dealing with GST-registered suppliers, as it allows them to recover input tax on their purchases.

To claim input tax (GST) in Singapore, businesses must meet specific conditions outlined by the Inland Revenue Authority of Singapore (IRAS) :

Supply or Importation: The goods or services must be supplied to you or imported by you.
GST Registration: You must be registered for GST.
Business Use: The goods or services should be used or intended for use in your business activities.
Local Purchases: Supported by valid tax invoices addressed to you.
Imports: Supported by import permits showing you as the importer, along with relevant supporting documents.
Attribution to Taxable Supplies: The input tax must be directly attributable to taxable supplies (standard-rated or zero-rated) or out-of-scope supplies that would be taxable if made in Singapore.
No Disallowed Claims: Input tax claims should not fall under disallowed categories as specified in Regulations 26 and 27 of the GST (General) Regulations.
Timely Claiming: Input tax should be claimed in the accounting period corresponding to the date of the tax invoice or import permit.

Common disallowed Input Tax claims

Expenses related to private or personal use.
Certain motor vehicle expenses.
Club subscription fees.
Medical and accident insurance premiums.
Benefits provided to family members of staff.

Submitting GST returns, Payment / Refund of GST

In Singapore, GST-registered businesses are required to file GST returns with the Inland Revenue Authority of Singapore (IRAS), typically on a quarterly basis. The GST return (Form F5) summarizes the total value of taxable supplies, purchases, and the GST collected and paid during the accounting period. Businesses must report the output tax (GST collected on sales) and input tax (GST paid on purchases) accurately. If the output tax exceeds the input tax, the difference must be paid to IRAS. Conversely, if the input tax is greater, the business may receive a refund. All GST returns must be filed electronically through myTax Portal within one month from the end of the accounting period. It is crucial for businesses to ensure timely and accurate filing to avoid penalties and late payment interest imposed by IRAS.

Our Area of GST Services:

1) BUSINESS INCORPORATION & GST REGISTERATION
- GST Registration Assessment: Determine your liability and optimal timing for GST registration.- Application Support: Facilitate applications for GST registration or exemption.- GST Scheme Applications: Assist in applying for schemes like the Major Exporter Scheme and Import GST Deferment Scheme.- Startup Advisory: Provide guidance on GST system coding and procedural documentation.

2) GST COMPLIANCE

- Pre-Registration GST Claims: Assist in claiming GST incurred before registration.- GST Return Services: Review GST documentations accounting entries to ensure completeness & accuracy before submission
- GST F5: Completing and file quarterly GST returns by e-filing.
- GST F7: To correct errors made in GST returns.
- Health Checks: Conduct one-off reviews and comprehensive GST health assessments.- Assisted Self-Help Kit (ASK) Reviews: Support applications or renewals of GST schemes and voluntary error disclosures.

3) GST ADVISORY

- Transaction Analysis: Advise on GST treatment for daily business transactions.- Provide guidance on start-up matters, such as the recoverability of GST on business expenses, proper GST treatment and tax coding within accounting systems.- Due Diligence: Perform thorough reviews during mergers, acquisitions, or business restructuring.

4) IRAS AUDITS & INVESTIGATIONS

- Audit Management: Represent and manage interactions with IRAS during audits or investigations.- Query Responses: Assist in formulating comprehensive replies to IRAS inquiries.- Appeals & Objections: Guide through the process of contesting IRAS decisions.- Error Disclosures: Prepare and e-file GST F7 forms for error reporting.

5) BUSINESS CESSATION

- Deregistration: Handle applications for GST cancellation (F8 forms).- Liquidation Advisory: Advise on GST implications during business closure.- Business Transfers: Provide guidance on GST considerations during business transfers.- Final Returns: Review and e-file concluding GST returns.

GST SERVICES fees

SERVICES	FEE	REMARKS
GST Voluntary Registration (included follow up process)	S$500	Proactive registration allows you to claim input tax earlier, improving cash flow. Fee includes full application handling and IRAS correspondence until approval.
GST Compulsory Registration (included follow up process)	S$650	Avoid late registration penalties. We handle the urgent submission, all IRAS requirements, and secure your compliance status efficiently.
GST Form 5 Preparation For Submission Purposes (Each Quarter)	From S$150	Available only with our Bookkeeping service to ensure accurate, verified submissions.
GST Health Check (Pre-Filing Review)	$500 – $800 / quarter$1,800 – $2,500 / year	High-level review of GST workings, sample checks on invoices and expenses, identification of common errors and risk areas, written summary of findings.
GST Compliance Review (Pre-Filing)	$1,200 – $1,800 / quarter$4,000 – $6,000 / year	Detailed review of GST computation, invoice-level checks on high-value items and samples, verification of GST treatment and claim eligibility, queries resolved before filing,
Assisted Self-Help Kit (ASK) review - perform by ATP (GST)	contact us for a quotation	An ASK review is a strategic opportunity to clean up past errors with minimal repercussions, reinforcing your commitment to compliance while protecting your business from severe penalties, potentially reducing penalties under the Voluntary Disclosure Programme. Conducting ASK is compulsory for applying or renewal of specific GST Schemes.

Goods & Services Tax

Goods & Services Tax - An Overview

Our Area of GST Services:

GST SERVICES fees

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