GST
The Goods and Services Tax (GST) in Singapore is a consumption tax levied on the supply of goods and services. As a business owner, it is crucial to comprehend GST registration requirements to maintain compliance with the law.
GST Registration
A business must register for GST under the GST Act if its taxable turnover surpasses $1 million within a 12-month period or is reasonably anticipated to exceed $1 million in the forthcoming 12 months. Taxable turnover refers to the total value of all taxable supplies made within Singapore, excluding GST. Businesses with taxable turnover below $1 million may voluntarily register for GST. Voluntary registration can benefit businesses by allowing them to reclaim GST incurred on their purchases (input tax) and enhance their credibility among customers and suppliers.
Overseas Vendor Regime
The Inland Revenue Authority of Singapore (IRAS) introduced the Overseas Vendor Regime (OVR) in January 2020. The OVR mandates overseas vendors supplying taxable digital services to customers in Singapore to register for GST if their annual turnover exceeds $100,000.
Digital services encompass, but are not limited to, software provision, media content, online advertising, and electronic marketplaces. Examples of overseas vendors affected by the OVR may include e-commerce platforms, online software providers, and streaming services.
Overseas vendors required to register for GST under the OVR must designate a local agent to represent them in Singapore and adhere to GST registration, filing, and payment requirements.
Nutshell
In summary, Singaporean businesses must register for GST if their taxable turnover exceeds $1 million or if they voluntarily opt to do so. Moreover, overseas vendors supplying taxable digital services to customers in Singapore must also register for GST under the Overseas Vendor Regime if their annual turnover exceeds $100,000. Non-compliance with GST requirements can lead to penalties and fines. Therefore, business owners must ensure they understand the GST registration requirements and abide by the law to avert any legal or financial consequences.
Need Help?
If you require assistance or have any questions regarding the registration process or any other aspect of GST compliance, please do not hesitate to contact our team of experienced professionals. We are here to provide guidance and support tailored to your specific business needs, helping you navigate the complexities of Singapore’s taxation system with confidence. Reach out to us today, and let us help you ensure your business remains compliant and operates smoothly.
English 
Chinese