{"id":470,"date":"2023-05-16T13:20:29","date_gmt":"2023-05-16T05:20:29","guid":{"rendered":"https:\/\/www.99.co\/singapore\/glossary\/?p=470"},"modified":"2023-07-04T13:31:42","modified_gmt":"2023-07-04T05:31:42","slug":"gst-singapore","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/glossary\/gst-singapore\/","title":{"rendered":"GST\u00a0in Singapore"},"content":{"rendered":"\n

What is GST?<\/strong><\/h2>\n\n\n\n

Goods and Services Tax (GST), also known as Value Added Tax (VAT) in many other countries, is a consumption tax paid on the supply of commodities and services in Singapore and the import of goods into Singapore. <\/p>\n\n\n\n

GST is an indirect tax that is applied to the selling price of products and services delivered by GST-registered business entities in Singapore. It is now 8% and will be raised to 9% in January 2024. <\/p>\n\n\n\n

How does GST work? <\/strong><\/h2>\n\n\n\n

For example, if you charge a customer in Singapore S$100 for your services, you must invoice your customer S$107 (S$100 for your service + 7% GST). This invoiced GST amount obtained from the client on behalf of the tax authorities must then be paid to the Singapore tax department quarterly via GST tax filing.<\/p>\n\n\n\n

Why do we need GST? <\/strong><\/h2>\n\n\n\n

It is viewed as a mechanism to reduce personal and corporate income tax rates while also providing a consistent cash flow to the Singapore government regardless of the status of the economy. Furthermore, because this is a consumption tax rather than an income tax, it is regarded as more equitable. It encourages individuals to save and invest in fostering a more stable economy.<\/p>\n\n\n\n

The GST rise funds government spending that benefits Singaporeans, by allocating the funds to improving healthcare, education, and security. These funds can be used to not only improve the infrastructure required in these fields, but also hire capable professionals, employ better technological solutions, and put in place more efficient processes. <\/p>\n\n\n\n

Ultimately, raising the GST is required to meet our country’s growing demands.<\/p>\n\n\n\n

In addition, the GST Voucher scheme assists lower and middle-income Singaporeans in offsetting a portion of their GST expenditures. <\/p>\n\n\n\n

Should I register my company for GST? <\/strong><\/h2>\n\n\n\n

Singapore-incorporated businesses are not automatically registered to levy GST. Companies that meet specific qualifications<\/a> must apply to IRAS to become GST-registered before they may charge and collect GST. <\/p>\n\n\n\n

You have to register your company for GST when; <\/p>\n\n\n\n