In Singapore, the rules regarding taxation and GST are laid by the Inland Revenue Authority of Singapore. Introducing GST came with many complications for taxpayers of the countries. But Singapore has a very well laid a set of rulers and regulations to deal with these complications. Singapore Goods and Services Tax, Here are the various rules that Singapore’s Taxpayers need to keep in mind.
When GST registration is required?
We do not always need to register the businesses of Singapore (Singapore Bookkeeping Service). According to IRAS, registration for GST is voluntary but compulsory under certain conditions. The conditions that required a business to register are:
- The annual turnover of your business must exceed the amount of S$1 million in the last financial period.
- 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, such as in exports. According to IRAS, zero-rated supplies categorize the export of goods and services under it. Therefore, we charge GST at 0% only. Also, a GST registered that is entitled to a 0% tax can also claim their input tax.
Services Given Internationally
Your business, if dealing with providing international services, can be exempted from zero-rated GST, i.e. at 0%. But it is only applicable when the business falls under Section 21(3) of the GST Act. It does not benefit all international services to zero-rate GST.
Exemptions of GST in Singapore
We need not charge GST on exempt supplies:
- Financial Services: The following are some financial services that IRAS exempt in the fourth schedule of the GST Act.
” Charges by banks
” Exchange of currencies
” Provisions on loans
“Issue/sale of shares or bonds
- Sale and Lease Of Residential Tax: it exempts The sale and lease of residential and immovable properties from GST. Vacant land or the building and flats come under this exemption. But we charge GST on all movable properties like furniture or appliances.
- Capital Purchase Of More Than S$1000 Should Be Separately Accounted: All the capital purchases made for the business which amounts to more S$1000 are to be separately recorded and managed. We do this to claim the input tax.