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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.


When GST registration is required?

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:

  1. The annual turnover of your business must be exceeding the amount of S$1 million in the last financial period.
  2.  Your expected turnover at the end of the financial year is reaching S$1million according to the speculations based on sales.

If your business fulfills either of the conditions, it must get itself registered right away.

GST on Exports

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.

Services Given Internationally

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.

Exemptions of GST in Singapore

GST does not need to be charged on exempt supplies:

  1. Financial Services: The following are some of the financial services that are to be exempted in the fourth schedule of the GST Act.
    ” Charges by banks
    ” Exchange of currencies
    ” Provisions on loans
    ” Issue/ sale of shares or bonds
  2. Sale And Lease Of Residential Tax: The sale and lease of residential and immovable properties are exempted from GST. Vacant land or the building and flats come under this exemption. But, all the movable properties like furniture or appliances are to be subjected to GST.
  3. Capital Purchase Of More Than S$1000 Should Be Separately Accounted: All the capital purchases made for the business that is amounted to more S$1000 are to be separately recorded and managed. This is to be done in order to claim input tax.

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