In Singapore, the rules regarding taxation and GST are laid by the Inland Revenue Authority of Singapore. The introduction of GST came with many complications for taxpayers of the countries. But Singapore has a very well laid set of rulers and regulations to deal with these complications. Here are the various rules that are to be kept in mind as Singapore’s Taxpayers.
The businesses of Singapore (Singapore Bookkeeping Service) need not be always registered. According to IRAS, registration for GST is voluntary, but compulsory under certain conditions. The conditions that required a business to register are:
If your business fulfills either of the conditions, it must get itself registered right away.
The standard rate of GST in Singapore is 7% that is to be charged on goods and services produced in Singapore and consumed by a consumer within the territory of the country.
However, IRAS provides certain exemptions in the GST, like in exports. According to the provisions of IRAS, Exports of goods and service are categorized under zero-rated supplies. Therefore, it is subjected to 0% GST. Also, a GST registered that is entitled to 0% tax can also claim their input tax.
Your business, if deals with providing international services can be exempted to zero-rated GST i.e. at the rate of 0%. But it is only applicable when the business falls under the provisions of Section 21(3) of the GST Act. Not all international services are benefited to zero-rate GST.
GST does not need to be charged on exempt supplies: