What to Take Note for GST Registration in Singapore

Goods and Services Tax (GST) is a key part of Singapore’s tax system, and any business owner operating in the country must understand how GST registration works. Managed by the Inland Revenue Authority of Singapore (IRAS), GST is similar to the Value-Added Tax (VAT) system used in many countries. For businesses, understanding when and how to register, what responsibilities follow registration, and how to remain compliant is crucial to avoiding penalties and improving cash flow management.

This article explores the essentials of GST registration in Singapore — from eligibility and compulsory thresholds to voluntary registration, compliance requirements, and best practices for managing your GST obligations.

Understanding GST in Singapore

GST is a consumption tax levied on most goods and services in Singapore, as well as on imported goods. Businesses collect GST on behalf of the government and remit it to IRAS after offsetting the GST they’ve paid on business expenses (input tax).

As of 2025, Singapore’s GST rate is 9%.It is applied to most local supplies and imports unless specifically exempted, such as the sale and lease of residential properties and most financial services.

1. When GST Registration Becomes Compulsory

The IRAS mandates GST registration for businesses that meet certain turnover thresholds. There are two main tests for determining when registration is required:

a. Retrospective View (Past 12-Month Basis)

If your total taxable turnover exceeded S$1 million in the past 12 months, you are required to register for GST.This applies even if you didn’t intentionally plan for it — once you cross the threshold, registration becomes mandatory.

Example:If your business had total taxable revenue of S$1.2 million from October 2024 to September 2025, you must register for GST by October 30, 2025.

b. Prospective View (Next 12-Month Basis)

You must also register for GST if you expect your turnover to exceed S$1 million in the next 12 months based on signed contracts, confirmed orders, or other firm evidence.

Example:If you secure a major project worth S$1.5 million to be completed over the next 8 months, you must apply for GST registration within 30 days from the date you expect to exceed the threshold.

2. Voluntary GST Registration

Even if your business does not meet the S$1 million turnover threshold, you may still choose to register voluntarily.This is often done for strategic or financial reasons, especially when your business deals primarily with other GST-registered entities.

Benefits of Voluntary Registration

• You can claim input tax on business purchases.

• Your business appears more established and credible to corporate clients.

• It may simplify cross-border transactions and vendor relations.

Conditions for Voluntary Registration

IRAS will require you to:

• Keep proper records and accounts.

• Stay GST-registered for at least two years.

• File accurate GST returns and make timely payments.

Voluntary registration is common among start-ups, B2B suppliers, and professional service providers who want to manage cash flow efficiently or appeal to larger clients.

3. Exemptions from GST Registration

Certain businesses can apply for exemption from GST registration even if their turnover exceeds S$1 million.This applies when more than 90% of your taxable supplies are zero-rated (i.e., goods or services exported or supplied internationally).

For example, if a Singapore logistics company primarily ships goods overseas and charges zero-rated GST, it can apply for exemption to avoid the administrative burden of filing returns.

However, IRAS approval is needed, and businesses must prove that the 90% threshold is consistently met.

4. How to Register for GST in Singapore

The GST registration process is straightforward and fully digital.

Step 1: Determine Eligibility

Review your turnover and forecast to confirm whether registration is compulsory or voluntary.

Step 2: Complete the e-Learning Course (if Voluntary)

Businesses registering voluntarily are required to complete the “Overview of GST” e-Learning course from IRAS.This ensures that applicants understand their obligations.

Step 3: Submit Application via MyTax Portal

You can apply online via IRAS’s MyTax Portal, using your CorpPass.Documents typically required include:

• Latest financial statements

• Sales invoices

• Business contracts (if registering prospectively)

• ACRA business profile

Step 4: Receive GST Registration Number

Once approved, IRAS will issue a GST registration number and specify your effective date of registration. You must then start charging GST from that date.

5. What Happens After GST Registration

Once your business is GST-registered, new responsibilities arise. You must now act as a tax collector for the government and ensure full compliance.

a. Charging GST (Output Tax)

You must charge 9% GST on all taxable supplies (goods and services provided locally), unless they fall under exempt or zero-rated categories.Your invoices must include:

• The phrase “Tax Invoice”

• Your GST registration number

• The amount of GST charged

• The total amount payable including GST

b. Claiming GST (Input Tax)

You can claim GST incurred on business-related expenses such as office supplies, utilities, and professional services — provided you have a valid tax invoice from a GST-registered supplier.

However, input tax cannot be claimed for:

• Non-business expenses (e.g., personal entertainment)

• Benefits to employees (e.g., gifts or personal use items)

• Expenses related to exempt supplies

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6. Filing and Payment Obligations

GST-registered businesses must file quarterly GST returns (Form F5) within one month after the end of each accounting period.This involves reporting both:

• Output tax (GST you collected)

• Input tax (GST you paid)

The difference between these determines whether you pay IRAS or receive a refund.

Example:

If you collected S$90,000 GST from customers but paid S$60,000 in GST to suppliers, you will remit S$30,000 to IRAS.

IRAS strongly encourages using GIRO for automatic payment or refund processing.

7. Penalties and Late Registration Risks

Failing to register for GST on time can result in serious penalties.

• Late registration fine: Up to S$10,000

• Additional penalty: 10% of the GST due for the period of non-registration

• You may still be required to pay backdated GST even if you did not collect it from customers.

Therefore, it is best to monitor your turnover monthly to identify when registration thresholds are approaching.

8. De-Registration (Cancelling GST Registration)

A business can apply for de-registration if:

• It stops making taxable supplies, or

• Its taxable turnover falls below S$1 million and is expected to stay below that.

Applications are made online via MyTax Portal, and the business must account for output tax on any remaining business assets (like inventory or equipment) as of the de-registration date.

9. Common GST Mistakes to Avoid

Many businesses unintentionally make GST errors that can result in compliance issues. Here are some frequent mistakes to watch for:

a. Missing the Registration Deadline

Failing to monitor turnover can cause accidental non-compliance.

b. Incorrectly Charging GST

Charging GST on exempt supplies (e.g., residential property) or failing to charge GST when required.

c. Claiming Input Tax Without Proper Documentation

IRAS requires valid tax invoices to substantiate all claims.

d. Late GST Return Filing

This can result in late submission penalties and compliance risk flags.

e. Misunderstanding Zero-Rated vs. Exempt Supplies

Zero-rated supplies are still taxable (but at 0%), whereas exempt supplies are not taxable — meaning input tax cannot be claimed.

10. Best Practices for GST Compliance

To avoid penalties and ensure smooth operations, implement these best practices:

a. Maintain Accurate Records

Keep all invoices, receipts, and supporting documents for at least five years.

b. Use Accounting Software

Consider using IRAS-approved accounting software that can generate compliant tax invoices and automate GST computation.

c. Conduct Regular Internal Reviews

Quarterly or annual GST reviews can help detect mistakes early.

d. Train Staff

Ensure your finance or accounting team understands GST requirements.

e. Engage a Professional Accountant or Tax Agent

If unsure, it’s best to consult a qualified firm that offers GST advisory and filing services.They can ensure accuracy and prevent costly errors during IRAS audits.

11. How GST Impacts Your Business Cash Flow

While GST is not a direct business cost (since it’s borne by consumers), it affects cash flow because you collect GST from customers but pay suppliers before refunds are processed.

Tips to manage cash flow effectively:

• Time your invoices and supplier payments to match GST cycles.

• Monitor input and output tax differences each quarter.

• Keep a separate bank account for GST collections to avoid mixing funds.

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12. Key Deadlines and IRAS Expectations

• Registration Deadline: Within 30 days after meeting the threshold.

• Filing Frequency: Quarterly (every 3 months).

• Filing Due Date: Within 1 month after the accounting period ends.

• Record Retention: Minimum 5 years.

• Voluntary Registration Duration: Minimum 2 years before cancellation.

Failure to meet any of these deadlines may result in late fees or even prosecution for repeated non-compliance.

13. Getting Help with GST Registration

Navigating GST registration can be complex, especially for SMEs and startups.A professional accounting or corporate service firm can assist you in:

• Assessing your GST liability.

• Preparing necessary documents for submission.

• Setting up GST-compliant invoicing systems.

• Filing quarterly returns on time.

• Managing IRAS queries and audits.

Getting expert advice ensures that you stay compliant while focusing on business growth.

Conclusion

GST registration in Singapore is a crucial compliance requirement that every business must take seriously. Whether your registration is compulsory or voluntary, it’s essential to understand the process, maintain proper documentation, and stay updated with IRAS regulations.