Learn About Singapore Gst Service

By Author: Robert Sparks
Total Articles: 68
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Goods and Services Tax (GST) is defined as a tax charged on the supply of goods and services manufactured and produced in Singapore and on the importation of goods to Singapore. The current GST rate is implemented on 7%.

Goods and Services Tax (GST) is applied almost similarly to Value Added Tax (VAT) in most countries. It was implemented on April 1, 1994 in Singapore and was used as a guide on the UK VAT legislation and New Zealand legislation.

The Inland Revenue Authority of Singapore (IRAS) is a government body responsible for the administration, review, implementation and collection of GST. GST is applied on all goods and services except for financial services and the sale or lease of residential properties. Just like business registration and incorporation, there is also a need to register your business for GST and this is the reason why there is Singapore GST service available in the country.

There are the reasons why there is a need to register for GST:
1. Most businesses register for GST to claim back the GST incurred on their business purchases.
2. When GST paid exceeds GST collected, ...
... the difference can be claimed from IRAS as a GST refund.
3. When GST rate increase, it may make business sense to voluntarily register to collect GST in order to claim back GST incurred on business purchases.

The following can register for GST:
1. Sole proprietorships
2. Partnerships
3. Limited Liability partnerships
4. Companies
5. Clubs, associations, management corporations or organizations
6. Non-profit organizations
7. Statutory boards
8. Government bodies

These are the basic information you need to know about Goods and Services Tax:
1. A business is required to register if your annual turnover exceeds or is likely to exceed S$1 million from the sale of taxable goods and services. This requirement may be waived if most of your goods or services are exported or supplied internationally ("zero-rated supplies").
2. Sole proprietorships, partnerships, limited liability partnerships, companies, clubs, associations, management corporations or organizations, statutory boards and government bodies can register for GST.

There are the GST schemes provided for business professionals.
1. Goods and Services Tax Assistance Scheme
Get a grant to lower the costs involved in becoming a GST-registered trader. GST traders can collect GST and claim back for GST paid to suppliers.
2. Major Exporter Scheme (MES)
Major exporters can improve their cash flow by deferring GST payments on goods imported mainly for re-export out of Singapore.
3. Licensed Warehouse Scheme
Transform your warehouse into a licensed warehouse for storing dutiable goods. In licensed warehouses, duty and Goods and Services Tax (GST) are suspended until the goods are released for sale into Singapore.
4. Zero GST Warehouse Scheme (ZGS)
Businesses can transform their warehouses into zero-GST warehouses to minimize red tape and bypass the GST process.

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