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.
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:
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, 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.
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.
We need not charge GST on exempt supplies: