Goods and Services Tax (GST) is an important part of Singapore’s tax system. Businesses that are registered for GST are required to charge GST on their taxable supplies and file GST returns regularly with the Inland Revenue Authority of Singapore (IRAS). Filing GST returns correctly and on time is essential for maintaining compliance with tax regulations and avoiding penalties.
For many business owners, especially those who are new to running a company in Singapore, GST filing may seem complicated. However, once the process is understood, it becomes a routine part of managing business finances.
This article provides a detailed guide on how to file GST returns in Singapore, including who needs to file GST returns, what information is required, how the filing process works, and the best practices businesses should follow to ensure compliance.
Understanding GST Returns
A GST return is a report that GST-registered businesses must submit to IRAS to declare their GST transactions during a specific accounting period.
The GST return summarises the following:
- Total value of sales
- Total value of purchases
- Output GST collected from customers
- Input GST paid on business expenses
- Net GST payable or refundable
The purpose of the GST return is to allow IRAS to determine how much GST the business must pay to the government or how much GST the business can claim back.
GST returns are submitted using a form called GST F5.
Who Needs to File GST Returns
All businesses that are registered for GST in Singapore must file GST returns.
This includes businesses that registered for GST because:
- Their annual taxable turnover exceeded SGD 1 million, or
- They voluntarily registered for GST.
Once a business becomes GST-registered, it must file GST returns for every accounting period, even if there were no transactions during that period.
This means that even if a company had:
- No sales
- No purchases
- No GST collected
The company must still submit a Nil GST return.
GST Accounting Period
GST returns are filed according to a specific GST accounting period assigned by IRAS.
For most businesses, GST returns are filed quarterly.
A typical GST accounting cycle looks like this:
| GST Period | Filing Deadline |
|---|---|
| Jan – Mar | 30 Apr |
| Apr – Jun | 31 Jul |
| Jul – Sep | 31 Oct |
| Oct – Dec | 31 Jan |
The GST return must be submitted within one month after the end of the accounting period.
For example:
If the accounting period ends on 31 March, the GST return must be filed by 30 April.
Late submissions may result in penalties.
Information Required Before Filing GST Return
Before filing a GST return, businesses must ensure their accounting records are properly prepared.
You will need the following information:
Total Sales
This includes the total value of goods and services sold during the GST accounting period.
Sales should be classified into:
- Standard-rated supplies
- Zero-rated supplies
- Exempt supplies
Total Purchases and Expenses
Businesses must calculate the total value of purchases and expenses incurred during the GST period.
This includes:
- Operating expenses
- Inventory purchases
- Office supplies
- Professional services
- Equipment purchases
Output GST
Output GST is the GST that the business collected from customers when selling goods or services.
For example:
If a company sells services worth $10,000, GST charged at 9% is $900.
The $900 is output GST.
Input GST
Input GST refers to the GST that the business paid on purchases and expenses.
For example:
If a company buys supplies worth $5,000, the GST paid is $450.
This $450 is input GST.
GST-registered businesses can claim this input GST back from IRAS.
Calculating GST Payable
Once output GST and input GST are calculated, the net GST payable is determined using this formula:
GST Payable = Output GST – Input GST
Example:
Output GST collected: $2,000
Input GST paid: $1,200
GST payable to IRAS = $800
If input GST exceeds output GST, the business may receive a GST refund.
Preparing Your Accounting Records
Before filing the GST return, businesses should ensure their accounting records are accurate and complete.
Typical records required include:
- Sales invoices
- Purchase invoices
- Expense receipts
- Import documents
- Export documentation
- Accounting ledgers
These records should be maintained for at least five years.
Many businesses use accounting software such as:
- Xero
- QuickBooks
- MYOB
These systems can generate GST reports automatically, making GST filing easier.
How to File GST Return Through IRAS
GST returns in Singapore are filed electronically through the IRAS myTax Portal.
The filing process is straightforward if the business has already prepared the necessary information.
Below is a step-by-step guide.
Step 1: Log in to myTax Portal
Businesses must log in to the IRAS myTax Portal using Singpass or Corppass.
For companies, the authorised personnel must use Corppass.
Once logged in, navigate to the GST section.
Step 2: Select File GST Return (GST F5)
After logging in, select the option:
File GST Return (GST F5)
This form is used to report GST transactions for the accounting period.
Step 3: Enter GST Return Information
The GST F5 form contains several boxes where businesses must input their figures.
These boxes include:
Box 1: Total Value of Standard-Rated Supplies
This refers to sales that are subject to the standard GST rate of 9%.
Example:
Retail sales
Consultancy services
Marketing services
Box 2: Total Value of Zero-Rated Supplies
These are supplies taxed at 0%.
Examples include:
- Exported goods
- International services
Box 3: Total Value of Exempt Supplies
These supplies are not subject to GST.
Examples include:
- Financial services
- Residential property rental
Box 4: Total Value of Supplies
This is the total of Boxes 1, 2, and 3.
Box 5: Total Value of Taxable Purchases
This refers to purchases on which GST was paid.
Box 6: Output Tax Due
This is the total GST collected on sales.
Box 7: Input Tax and Refunds Claimed
This is the total GST the business wants to claim back on purchases.
Box 8: Net GST Payable
This is calculated automatically by the system.
If output GST exceeds input GST, the business must pay the difference.
If input GST exceeds output GST, the business may receive a refund.
Step 4: Review the GST Return
Before submitting the GST return, businesses should carefully review all figures.
Common checks include:
- Ensuring sales figures match accounting records
- Verifying GST calculations
- Checking that input tax claims are valid
Submitting incorrect GST returns may lead to compliance issues.
Step 5: Submit the GST Return
Once the figures are verified, submit the GST return electronically through the portal.
After submission, a confirmation page will appear.
Businesses should keep a copy of the confirmation for their records.
Step 6: Make GST Payment
If the GST return shows that GST is payable, the payment must be made within one month after the end of the GST accounting period.
Payment methods include:
- GIRO
- Internet banking
- PayNow
- Electronic funds transfer
Many businesses choose GIRO because it automates GST payments and reduces the risk of late payments.
Filing Nil GST Returns
Businesses that had no GST transactions during the accounting period must still file a GST return.
This is known as a Nil return.
The filing process is the same, but all relevant boxes will contain zero values.
Failure to file a Nil return can still result in penalties.
Late Filing Penalties
IRAS imposes penalties on businesses that fail to file GST returns on time.
Common penalties include:
Late Submission Penalty
A late submission may result in a $200 penalty, increasing for continued non-compliance.
Estimated GST Assessment
If a business fails to file its GST return, IRAS may estimate the GST payable.
This estimate may be higher than the actual GST liability.
Additional Penalties
Businesses that repeatedly fail to file GST returns may face:
- Additional fines
- Legal enforcement actions
- Suspension of GST registration
Therefore, filing GST returns on time is extremely important.
Common GST Filing Mistakes
Businesses sometimes make mistakes when filing GST returns.
Common issues include:
Incorrect GST Classification
Some businesses incorrectly classify supplies as zero-rated or exempt.
This may lead to underpayment of GST.
Claiming Invalid Input Tax
GST can only be claimed for legitimate business expenses.
Personal expenses cannot be claimed.
Missing Supporting Documents
Businesses must maintain proper invoices and receipts to support GST claims.
Mathematical Errors
Manual calculations can lead to incorrect figures.
Using accounting software can help reduce these errors.
Benefits of Engaging a Professional Accountant
Many businesses engage accounting firms to handle their GST returns.
Professional accountants can:
- Ensure GST compliance
- Prepare accurate GST reports
- Handle GST registration
- Manage GST filing deadlines
- Assist with IRAS audits
Outsourcing GST filing allows business owners to focus on growing their business while ensuring tax compliance.
Best Practices for GST Filing
Businesses should adopt good practices to ensure smooth GST filing.
Maintain Proper Accounting Records
Keep accurate and organised financial records.
Use Accounting Software
Automated accounting systems reduce errors and simplify GST reporting.
Track GST Deadlines
Businesses should maintain a calendar to track GST filing deadlines.
Conduct Regular Internal Reviews
Review GST transactions regularly to ensure accuracy.
Seek Professional Advice
Consulting accountants or tax professionals can help businesses avoid costly mistakes.
Conclusion
Filing GST returns in Singapore is a mandatory responsibility for all GST-registered businesses. The process involves summarising sales, purchases, output tax collected, and input tax paid during the GST accounting period and submitting this information to IRAS through the GST F5 form.
Most businesses file GST returns quarterly, and the return must be submitted within one month after the end of each accounting period. Businesses must also ensure that GST payments are made on time to avoid penalties.
Proper accounting records, accurate GST calculations, and timely filing are essential for maintaining compliance with Singapore’s tax regulations. By understanding how GST returns work and following best practices, businesses can manage their GST obligations efficiently and avoid unnecessary penalties.
For many companies, working with professional accountants or bookkeeping firms can simplify the GST filing process and ensure that all GST requirements are handled correctly.