If you own a business in Singapore, there are several legal, incorporation, and registration requirements that you should meet as your business expands and grows. You have to start from scratch by incorporating your company, registering it, taking care of its accounts and finances, taxes, and other important matters so you are able to increase your profits and grow your business. One such matter that needs your attention is the question of GST.
GST in Singapore is Goods and Services Tax that is a value added tax levied on the supply and import of goods and services. There are some requirements for a business to be GST registered and it expects certain roles and responsibilities from such businesses. Here, we will give an overview of what GST registration is and what it means for you if you register your business for GST.
GST Registration Requirements
In Singapore, it is compulsory for a business to register for GST if your taxable turnover exceeds $1 million dollars in a year. This is a requirement by the Inland Revenue Authority of Singapore (IRAS) that must be met if you meet this requirement. However, if the turnover is less, there is no compulsion to register for GST but still you can opt to register at your own will. You do get the advantage of lowering your business costs if your business is GST registered.
Responsibilities Of GST Registered Business
If you register your business for GST, there are several requirements and responsibilities that are expected from you. These are discussed below:
- As a GST registered business, you will have to charge GST on the supply of goods and services that are made in Singapore. These include business transactions as well as the sale of equipment and other assets.
- Wherever you quote or display the prices of goods or services, they must include the GST.
- On the sale of any good or service, the customer is supplied with an invoice. The company’s GST registration number must be printed on each invoice that the customer receives.
- Your company must keep up-to-date records of business transactions and accounts which are essential for preparing for GST returns. This is a very important matter that needs to be dealt with carefully because the IRAS can choose to audit the accounts at any time. If there is any inaccuracy in the accounts, it can result in various problems for your business. Outsourcing your company’s accounting matters to a professional company like Morrison Management can help keep the records straight and ensure that all accounts and records are kept properly.
- Another important responsibility that you must fulfill as a GST registered company is that you have to file your GST returns. This must be done every quarter and the amount of GST due to IRAS must be paid within 30 days of the GST return. If you are unable to file the GST returns on time or do not pay IRAS the due GST on time, you will have to bear heavy penalties.
- Whenever you make any business purchases, you must claim input tax on them. These business purchases could be anything that you buy for your business use e.g. furniture, hardware, software, or any other goods purchased for resale to customers. However, it does not include certain expenses made by the employees such as medical expenses or logistics expenses. Wherever the input tax expenses are incurred, the corresponding input tax must be shown in the GST return that is filed for that particular quarter.
- Another important responsibility of a GST-registered company is that if there is any important change in your business, e.g. the address gets changed, you change or update the name of the business, the ownership changes somehow, or the directors are changed, you are liable to notify IRAS about these changes within a month. If you are unable to do so, you may get penalized.
Outsourcing your GST related matters to a professional service provider saves one from the hassle of worrying about all these responsibilities. The service provider will be responsible for ensuring that all these requirements are met in an effective and timely manner.
If you hire a professional corporate company, they will take care of all matters of GST registration and guide you on your new roles and responsibilities. You can find out more about the services they provide for GST audit and GST filing from websites such as this. Get in touch with one today!