Goods and Services Tax
Goods and Services Tax or GST is a broad-based consumption tax. Currently, GST is charged at 7%.
All Singapore businesses must register for GST when taxable turnover exceeds S$1million. Even if your company’s taxable turnover does not exceed $1 million, you can choose to voluntarily register for GST. Voluntarily registration is subject to the approval of the Comptroller of Income Tax.
Most sales of goods and supply of services in Singapore are taxable supplies for the purposes of GST. The export of goods overseas is zero-rated. Services that are classified as international services, are also zero-rated (taxed at 0%).
Once a company is registered for GST, you must charge GST on your supplies at the prevailing rate. This is an output tax. This output tax is collected by the company and paid to IRAS. The company can then claim input tax (GST that’s incurred on the company’s business expenses), subject to certain conditions.