What You Need to Know About Company GST Registration in Singapore
- WZ WU
- Feb 24
- 4 min read
Goods and Services Tax (GST) plays a big role in how businesses handle money in Singapore. It is a tax added to most goods and services, including imported items. Businesses must follow GST rules if they earn a certain amount each year.
Knowing when to register for GST helps businesses stay legal, avoid trouble, and even save money. This guide explains company GST registration in Singapore, its benefits, how to apply, and common mistakes to avoid.
What is GST and Why Does it Matter?
GST is a tax added to goods and services at different stages before reaching the customer. Businesses collect GST when selling products or services and hand it over to the Inland Revenue Authority of Singapore (IRAS).
The current GST rate stands at 9% from 1 January 2024. Some things, like selling homes, bank services, and healthcare, do not have GST.
The government collects GST to help run the country, while businesses get tax benefits and stronger market positions.
Who Must Register for GST?
Compulsory Registration
A business must register for GST if:
It earns more than S$1 million in the past 12 months – The owner must apply within 30 days after crossing this limit.
It expects to earn over S$1 million in the next 12 months – If contracts or sales records show it will reach the amount, the business must register.
Ignoring this rule leads to fines and problems with IRAS.
Voluntary Registration
A business earning less than S$1 million can still register for GST. Many owners choose this to claim tax refunds on what they buy for the company.
Once they register, they must stay in the system for at least two years and follow all GST rules.
Why Should a Business Register for GST?
1. Get Tax Refunds
A GST-registered business can claim tax refunds on things it buys for the company. This lowers costs and boosts profits.
2. Gain More Trust
Clients and partners prefer working with businesses that follow tax rules. Company GST registration in Singapore makes a company look more trustworthy and financially strong.
3. Make International Trade Easier
Businesses dealing with overseas buyers and sellers find GST helpful in handling taxes. It makes transactions smoother and tax planning easier.
4. Compete Better
A GST-registered business stands out in the market. Many large firms and government agencies only work with GST-registered companies.
How to Register for GST
Step 1: Check If You Qualify
Business owners must check their earnings and business type to see if they need to register under compulsory or voluntary registration.
Step 2: Gather the Right Documents
For compulsory registration, businesses must prepare:
Financial reports
Invoices proving earnings
Contracts showing future earnings
For voluntary registration, IRAS may ask for:
Proof of business activity
A letter agreeing to follow GST rules
Step 3: Submit Your Application
Business owners must apply through myTax Portal using CorpPass. The process is simple but requires attention to detail.
Step 4: Wait for IRAS to Approve
IRAS usually takes 10 working days to review applications. If needed, they ask for more details before approving.
Step 5: Get Your GST Registration Number
Once approved, IRAS gives the business a GST registration number. This number must appear on invoices, receipts, and tax documents.
What Are the Responsibilities of a GST-Registered Business?
1. Collecting GST on Sales
The business must add 9% GST to the price of taxable goods and services. It must show the GST amount on invoices and receipts. Some things, like bank services and homes, do not require GST.
2. Filing GST Returns on Time
A GST-registered business must report its GST every three months. The report includes:
GST collected from customers
GST paid on business purchases
The final GST amount to be paid or refunded
Filing late leads to penalties.
3. Keeping Clear Records
The business must store records of all sales and purchases for at least five years. IRAS may check these records during audits.
4. Paying GST on Time
A business must pay GST by the due date. Delays lead to extra charges and possible legal action.
5. Following GST Rules
GST-registered businesses must update IRAS on changes in business activity, ownership, or earnings.
Common GST Mistakes and How to Avoid Them
1. Registering Late
Some businesses forget to register for GST after crossing the S$1 million limit. This mistake leads to fines and extra tax payments.
2. Charging GST Incorrectly
Some businesses charge GST on exempted products or forget to add GST when needed. Always check IRAS guidelines.
3. Missing GST Deadlines
Late GST filings bring penalties. Business owners must track deadlines and submit their reports on time.
4. Keeping Poor Records
Some businesses fail to track GST transactions properly. Without clear records, IRAS may reject tax refunds or fine the business.
5. Claiming Wrong GST Refunds
A business cannot claim tax refunds on personal expenses or non-taxable items. Claiming the wrong refunds may lead to audits and fines.
How to Cancel GST Registration
A business can cancel GST registration if:
Its earnings dropped below S$1 million, and it does not expect to cross this limit again.
It stops running the business.
It no longer sells taxable goods or services.
The business owner must apply for cancellation through the myTax Portal. IRAS reviews the request and approves or rejects it. Before cancellation, the company must submit a final GST return.
Conclusion
GST registration helps businesses follow tax rules, gain trust, and reduce tax costs. Whether registering by law or by choice, a business must handle GST properly to avoid penalties.
Owners must know the rules, submit reports on time, and keep proper records. Following Singapore company GST registration requirements helps businesses run smoothly. Checking IRAS updates ensures businesses stay informed about new tax policies.
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