Goods and Services Tax (GST)
Businesses need to register for GST when their turnover exceeds $1 million per year. Businesses that do not exceed $1 million in turnover may register for GST voluntarily.
The GST (equivalent to Value Added Tax [VAT] in some countries) standard rate of 7% is levied on:
- The import of goods (collected by Singapore Customs).
- Supplies of goods and services in Singapore
Exemptions to GST
- sales and leases of residential properties
- the provision of most financial services
- Sale of goods delivered from overseas to overseas outside the scope of the GST Act
For the Export of Goods and International Services GST is rated zero.
A GST registered businesses must charge GST (output tax) but can also claim input tax. Input tax is GST incurred on business purchases and expenses (including import of goods). At the end of each accounting period a GST return (output tax and input tax) must be submitted to IRAS. The difference between output tax and input tax is the net GST payable to or refundable from IRAS.