Preliminary Guide For Singapore Goods And Services Tax

By Author: Shayne Hughes
Total Articles: 68
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Are you searching for right information about goods and services tax (GST)? You are definitely on the right place because we have prepared a brief description about Singapore goods and services tax (GST).

Definition: Good and Services Tax (GST) is a tax charged on the supply of goods and services made in Singapore and on the importation of goods into Singapore. The current rate for GST is 7%.

Reasons for GST registration:
• Most businesses register for GST to claim back the GST incurred on their business purchases.
• When GST paid exceeds GST collected, the difference can be claimed from IRAS as a GST refund.
• 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.

Who should register? Registration is required for companies with annual turnover of more than S$1 million from the sale of taxable goods and services. However, this requirement may be waived if most of your goods or services are exported or supplied internationally or what we call zero-rated supplies.

GST schemes ...
... that help to ease the cash flow of Singapore businesses:
• 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.
• 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.
• 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.
• Zero GST Warehouse Scheme (ZGS)
Businesses can transform their warehouses into zero-GST warehouses to minimize red tape and bypass the GST process.

Should you have further inquiries and concerns about goods and services tax, please do not hesitate to contact a corporate solutions provider in Singapore or directly contact Rikvin, Singapore’s leading company registration specialist and corporate solutions expert.

Rikvin provides a full spectrum of corporate services under one roof for Singapore company registration, assistance to form a Singapore company, accounting, tax, work pass and related compliance services for individuals and companies worldwide.