GST (Goods and Services Tax) Filing and Compliance
What is GST in Singapore?
Goods and Services Tax (GST) is a consumption tax imposed on the sale of goods and services in Singapore and on the importation of goods. It is charged at a rate of 9% (2024 onwards), which applies to most goods and services unless exempt. As a business registered for GST, you must collect GST from your customers on your taxable supplies and remit it to the Inland Revenue Authority of Singapore (IRAS).
In simple terms, GST is a tax that businesses charge on behalf of the government when selling goods or services. Businesses are responsible for paying the tax on their sales but can also claim back the GST they have paid on business-related purchases.
Types of Supplies
Standard-rated Supplies (Taxable at 9%)
These are supplies of goods and services that are subject to the standard GST rate of 9% (effective from January 2024). The majority of goods and services fall into this category, meaning businesses must charge GST on these transactions. Examples include the sale of most goods, services like consulting, and rentals of commercial properties.
How to Be Compliant with GST Requirements
GST compliance is crucial to avoid penalties and interest for late or incorrect filings. Below are some key compliance aspects that businesses must follow:
GST Registration:
If your taxable turnover exceeds or is expected to exceed SGD 1 million in the past 12 months or you foresee exceeding SGD 1 million in the next 12 months, you must register for GST with the IRAS. This is a legal requirement for all businesses meeting the turnover threshold.
GST Filing:
Businesses must file GST returns regularly. This is typically done quarterly via the mytax portal. GST returns must be submitted by the 15th day of the month following the end of the accounting period (e.g., for a quarter ending March 31, the GST return must be filed by April 15).
Filing and Payment Deadlines:
GST returns must be filed on time. Depending on the position, a tax payment or refund should be made before the due date. Failure to file on time will result in penalties and interest charges. Businesses should keep proper records and understand the deadlines for their respective GST filing periods.
Incorrect Input Tax Claims:
Businesses may accidentally claim input tax on non-business-related purchases, which is not allowed. This can result in the need to repay the GST claimed and potential penalties.
Missed Deadlines:
Failing to file GST returns on time is a common mistake. This can lead to late penalties and interest charges. To prevent missed deadlines, GST payments should also preferably be made via GIRO. A proper filing system is essential to avoid this.
Failure to Register as a GST-Registered Company on Time:
Businesses that exceed the SGD 1 million turnover threshold and fail to register for GST risk significant penalties and back payment of GST on past transactions.
Incorrect Classification of Goods or Services:
Incorrectly classifying goods or services as taxable or exempt can lead to errors in the GST returns. GST treatment for business transactions will eventually determine the accuracy of a GST return. Hence, it is essential to understand the various categories to ensure compliance.
Common Pitfalls in GST Compliance
How We Can Help with Your GST Compliance
Navigating GST requirements can be complex, especially when managing your business's financial transactions and understanding the nuances of the tax system. As a tax service provider, we help companies comply with all the GST rules and deadlines. Here’s how we can assist:
GST Registration:
If your business is nearing the SGD 1 million threshold or you’re unsure whether you should be registered, we will assess your situation and assist in the application for GST Registration. Some companies may also wish to voluntarily register as GST-registered companies.
GST Return Filing:
Our experienced consultants can prepare and file your GST F5 returns on your behalf. We will ensure that all relevant data is captured accurately and submitted on time, reducing the risk of penalties and interest for late filing. We can also assist you with the GST F7 filing if there are amendments.
Input and Output Tax Management:
We will help you manage your input and output taxes, ensuring that you only claim GST on business-related purchases and charge GST appropriately on your sales.
Record Keeping:
Proper documentation is key to GST compliance. We assist in maintaining accurate records of all transactions and related GST details, which is essential for both GST filings and potential audits.
GST Consultation:
Our tax experts can advise on GST planning, exemptions, and how best to handle complex transactions. We will ensure your business maximizes available exemptions and avoids common mistakes that can trigger costly audits or penalties.
Pricing will be quoted upon request and will depend on the size and complexity of your business's GST needs. Factors influencing pricing include your transaction volume and the complexity of your GST transactions.
Pricing
