GST Registration in Singapore

Main Authority for GST Registration in Singapore

The main authority for GST Registration in Singapore is the Inland Revenue Authority of Singapore (IRAS). All the procedures related to GST Registration in Singapore are handled by the IRAS. GST registration is dependent on the amount of taxable turnover of a business in a particular year.

Types of GST Registration

There are two types of GST registrations in Singapore. This is determined by the amount of annual taxable turnover of the business in a financial year. The following are the types of GST registrations:

• Compulsory registration-Compulsory registration is required for a business if the amount of taxable turnover is more than S$ 1 Million at the end of the calendar year or expected to be more than S$ 1 million in the next 12 months.
• Voluntary Registration-A business may apply to be GST-registered on a voluntary basis even if it is not compulsory for the business to register for GST as long as certain conditions are met.

Procedure for GST Registration in Singapore

The procedure for GST registration in Singapore depends on the form of registration required and the type of business entity. The following are the steps required for GST registration:

• Determine the type of registration required- First, the business has to determine the type of GST registration: compulsory or voluntary.

• Complete the e-learning course related to filing GST- In the next step, all businesses require to complete an e-learning course with respect to filing GST in Singapore. IRAS encourages businesses to go through the course for GST registration. For voluntary registration, a sole proprietor, partner, director, or trustee require to mandatorily complete the e-learning course and pass the quiz. However, the e-learning course is not required if: 

1. The sole proprietor, partner, director, or trustee of the entity has experience in handling and managing GST registered businesses.
2. The individual preparing GST returns is an Accredited Tax Advisers (ATA) or Accredited Tax Practitioners (ATP); or
3. If the business is registered under the Overseas Vendor Simplified Pay Only Registration Regime. 

•  File your application for GST registration- All applications for GST registration must be submitted online via the IRAS portal.

1. The applicant must be authorised in Corppass (for any IRAS digital services).
2. A softcopy of all documents must be prepared to be submitted.
   • For an overseas entity- A certificate of incorporation officially translated into English.
   • Appointment of local agent .
3. If you are going for Voluntary GST registration, then you must sign up for the General Interbank Recurring Order (GIRO).

• Processing the application- It will usually take 10 business days for processing an application.

• Receive notification regarding registration- If the application is successful, a letter will be sent by IRAS to the registered business address of the applicant. The letter shall contain the following: 

1. GST registration number of the business- The GST registration number must be printed on all invoices, credit notes and receipts.
2. The effective date of GST registration- The business must only charge GST from the effective date of registration.
   

Which type of GST registration to choose?

• Any standard rate of supplies (this would include any local supplies); and

• Any zero rated supplies (this would include any supply of international services or any form of exports of goods). 

The following is excluded from the meaning of taxable turnover: 

• Any form of exempt supplies (this includes any supplies that falls under the meaning of international services such as financial services which are provided to overseas companies);
• Sale of any form of capital assets (office machinery, equipment); and
• Out-of-scope supplies. 

If the business is not liable for compulsory registration, they can opt for voluntary registration. However, a business must go for voluntary registration after a careful consideration. 

• Taxable supplies are made by the business;
• The business makes any form of out-of-scope supplies. Out-of-scope supplies will include any sale of goods which do not enter Singapore or any form of goods in transit;
• The business makes any form of exempt supplies of financial services which may include international services; or
• The business procures any services from overseas providers and the business is not entitled to any form of input tax credit even if the business is GST registered. 

If the business intends to carry out the above transactions in the future, then the business has to apply for voluntary registration. 

Conclusion

GST registration is an indirect tax levied on businesses. A business in Singapore must register with the IRAS if the taxable turnover is more than a particular value. Even if GST registration is not mandatory a business can opt for voluntary registration after carrying out specific conditions.