GST or “Good and Services Tax”

Is a type of value added tax in Singapore. The current rate is 7% and is applied to the provision of goods and services in Singapore. A company is required to registered only if its annual turnover exceeds S$1 million or expects to exceed S$1 million.

Voluntary registration of GST is permissible and is subject to approval by the Comptroller of GST.

Once a company has registered for GST, it must charge GST on its supplies at the prevailing rate with the exception of relevant supplies that are subject to customer accounting like mobile phones, memory cards and off-the-shelf software whose GST-exclusive sale value exceeds $10,000 and which is not an excepted supply. GST charged and collected is known as output tax and should be paid to IRAS.

The GST that the company incur on business purchases and expenses (including import of goods) is known as input tax. If your business satisfies the conditions for claiming input tax, you can claim the input tax on your business purchases and expenses.

There will be a net off between the GST collected and paid, and any shortfall of GST collected will be paid by the company while any excess will be refunded to the company.