Many companies based in Singapore are required to register for Goods and Services Tax (GST). Those which have not done so are not allowed to impose and collect GST on purchases made by their customers. Therefore, GST registration will earn much money for any Singaporean company.

What are the Details of GST Registration in Singapore

Singapore is one of the many countries in the world which imposes GST (Goods and Services Tax) upon everyone who lives there. GST was introduced by the Singaporean government in 1994 as a means of increasing the overall revenue of the Singaporean government and the condition of its economy. When GST was initially introduced, it was set at a rate of 3%; today, Singapore’s GST rate is 7% but will increase to 9% in one of the years between 2021 and 2025. All businesses in Singapore which earn a certain amount of revenue are required to register for GST. GST registration is to be done by all business entities of which such is required regardless of whether the business is a sole proprietorship, partnership, or private limited company.


GST Registration Requirements

GST registration is not always necessary. Businesses based in Singapore which have an annual revenue of less than S$1 million at the end of any calendar year are not required to obtain GST registration. However, all businesses which have a revenue of more than S$1 million are required to obtain GST registration. All businesses which have received GST registration are allowed to impose GST costs upon their customers; however, those without GST registration may not do so.


Process of GST Registration in Singapore

If it happens to be the case that a certain company must undergo GST registration, the company owner must determine if the form of GST registration to be used will either be compulsory or voluntary GST registration. If voluntary registration is selected, the owner of the company must first complete two e-Learning courses unless the owner has owned other GST-registered companies in the past, has the company’s tax returns prepared by either an Accredited Tax Practitioners or Accredited Tax Adviser, or applied for the business to be registered under the Overseas Vendor Simplified Pay-only Registration Regime.

At this point, the application for GST registration may be submitted. Such applications are to be made online by using myTax Portal. Certain supporting documents are to be attached to the application. CorpPass registration is also required for a user to access myTax Portal’s GST registration services. After submission of the application, the Inland Revenue Authority of Singapore (IRAS) will begin to process the application. The processing of a submitted GST application usually takes approximately 10 working days. Should the GST application be approved, the business owner will receive a letter of notification from IRAS. This letter certifies that the company has indeed become a GST-registered company. It also contains information on the company’s GST registration number, which is to be printed on all credit notes, receipts, and invoices. The effective date of registration, which is the first day on which the business will impose and collect GST, is also mentioned.


Overseas Entities and GST Registration

Overseas entities are businesses which are neither Singapore residents nor conduct business operations anywhere in Singapore. They are subject to the same rules regarding GST as are Singapore-based businesses, with one key difference. Overseas entities are to appoint a Singapore-based local agent for the purposes of registering for GST. Such an agent is known as a Section 33 (1) agent. A Section 33 (1) agent has the task of managing a business’s GST payments and accounting matters. For this reason, when an overseas entity applies for GST registration, a letter which confirms the appointment of a local agent must be submitted alongside the application itself.

The process of GST registration can be rather complex; some might not understand everything that is a part of this process. For this reason, we at Paul Hype Page & Co provide services to our clients who may be struggling with understanding their requirements with regard to GST. Our tax team will also help you understand all the GST obligations required of your company. After you have used our services, you will never again have to worry about whether your company is compliant with the laws that govern GST in Singapore.