In Singapore, a company is still allowed to register for GST on a voluntary basis even if the turnover is below the expected $1 million. For companies who wish to do so on a voluntary basis, it is advised that they first perform a cost-benefit analysis on the impact that GST registration will have on the business and reporting process.
When it comes to doing business in Singapore, a company will be required to register for GST (Goods and Services Tax) on a compulsory basis provided the company fulfils these two requirements:
The company is taxable if the turnover for the past 4 quarters of the company has been more than $1 million, and if the company is not certain that the turnover will not exceed $1 million within the next 12 months
The company is taxable if the company is reasonably expecting the taxable turnover to exceed $1 million in the next 12 months.
Companies will be required to apply for GST within 30 days from the date of the company’s registration. In Singapore, a company is still allowed to register for GST on a voluntary basis even if the turnover is below the expected $1 million. For companies who wish to do so on a voluntary basis, it is advised that they first perform a cost-benefit analysis on the impact that GST registration will have on the business and reporting process.
What Are the Basic Requirements Needed Before Registering for GST
Before a company can register for GST, the following measures need to already be in place:
The company/business must already be registered with ACRA
The company/business already has a Business Bank Account
Business activities can be clearly defined along with the expected revenue for the next 12 months
Documents which may be required depending on whether the company has started sales
For companies with compulsory registration, past sales need to already have exceeded $1 million.
How to Register for GST
To register for GST, a company would first need to determine the type of GST registration they are opting for and complete the e-Learning course if needed.
Determining the type of GST registration here would mean a company needs to determine if they are applying for a compulsory or voluntary GST registration. E-Learning Courses are only applicable for voluntary registration. In the case of e-Learning courses, the company director, sole-proprietor, partner or trustee must complete two e-Learning courses and pass the quiz.
Once the above requirements have been met, the company may then register for GST via the myTax Portal or by submitting paper application(s). A number of supporting documents will be required for the submission, and you will need to check what the complete list is before completing the registration process.
Upon successful application of your GST, the company should then receive a letter informing that the business has been registered for GST. The letter would contain the following details:
The GST Registration Number of the company
The effective date of the GST registration
Do you need more assistance with your GST registration application? Get in touch with us.