Do you need to register for Goods and Services Tax (GST) in Singapore? (2025)

GST applies only to GST taxable goods and services.

Goods subject to standard GST (standard GST is 9% GST effective from 1/1/2024)

Most goods sold domestically or services provided domestically are standard duty-free goods.

Goods subject to 0% GST

• Export of goods: For export, GST is charged at 0%.
• Providing international services: GST is also charged at 0% (no tax rate) on international supplies of services: air tickets from Singapore to Thailand.

GST exempt goods

The items are GST free:

• Providing financial services;
• Provide digital payment code (effective from 01/01/2020);
• Buying, selling and renting houses;
• Import and supply of precious metals (Investment Precious Metals(“IPM”)) domestically.

The difference between zero-rated supplies and duty-free goods is that duty-free goods cannot claim input GST refunds.

GST applies to most industries in Singapore:

• Many business field/industry in Singapore except for goods and services exempt from GST such as financial services, supply of precious metals, etc.
• Importing goods services in Singapore: Procurement of marketing services from overseas service providers. 

With strong financial policies and government incentives, Singapore is an attractive market for foreign businesses looking to expand.

Opening a company in Singapore is an option that has been and is being given special attention by businesses to take advantage of tax incentives, a transparent banking and financial system, active support from the government as well as the prestige of one of the most developed markets in the region.

Entering a new market can be challenging. GLA, with our expert consultants and partners in Singapore, Hong Kong, Japan, Australia, and New Zealand, provides full support for businesses looking to invest and establish companies abroad

In addition to the tax incentives, the Singapore government has introduced several GST-related support schemes. These schemes generally help ease cash flow for businesses and contribute to creating a pro-business environment, making Singapore one of the ideal places to do business:

• Tourist refund Scheme: Tourists who purchase goods in Singapore from GST-registered stores and retailers are entitled to a refund of the GST paid during the purchase when taking the goods out of Singapore.
• Cash Accounting Scheme: is a special program for Small Businesses with annual revenue not exceeding 1 million SGD.
• According to GM (Gross Margin) project, GST is only charged on gross merchandise value.
• Major Exporter Scheme: deployed to help the cash flow of large exporting enterprises - enterprises with significant import value.
• According to the project Approved Contract Manufacturer and Trader: A business is not required to pay GST when it is referred by an overseas customer to deliver final goods to a consumer in Singapore. Under the Approved Marine Fuel Trader scheme, a business is not required to pay GST when it purchases marine fuel from a local supplier who is also registered for GST.
• Hand Carried Exports Project: for Businesses that wish to apply 0% GST if the goods are sold to an overseas customer and the Business's goods will be hand-carried out of Singapore via Changi International Airport.
• According to the project Zero GST Warehouse: Businesses can convert their warehouses to 0% tax warehouses to reduce administrative procedures and GST tax processes.
• Scheme Approved Third Party Logistics: allows Businesses to import goods for themselves or foreign use without paying import GST.

Conditions for Enterprises to submit voluntary GST registration application

A business can apply for voluntary GST registration if it is not subject to mandatory registration and must satisfy the following conditions:

• Annual turnover not greater than SGD 1 million; or
• The business only supplies goods outside Singapore (goods and services are outside the scope of GST); or
• The company provides tax-exempt financial services and is considered international services.

The advantage of voluntary registration is that Businesses can enjoy the benefits of GST refunds on input tax incurred during the course of business.

This is especially true when the Business provides services at a 0% GST rate (export or international services). Note that once voluntarily registered for GST, the Business is required to maintain the registration for at least 2 years and the Business must retain records for at least 5 years, even if the Business ceases operations and cancels the GST registration. The Business may also be required to comply with any additional conditions imposed by the Singapore Revenue Authority.

For the Government:

• GST creates a stable source of tax revenue that the Government can predict in both strong and recessionary economic environments.
• GST is an efficient tax due to the relatively low costs of administration and tax collection.
• Allow the Government to reduce Corporate income tax and personal income tax. This leads to the overall development of the economy.

For Businesses and Individuals:

• Most large businesses are required to register for GST, which means that a business that is registered for GST is generally recognised by customers as an established business of a certain size.
• GST only applies to spending. Savings and investments are not taxed. This will encourage people to save and invest in productive activities.

Limit:

• The drawback of GST registration is the administrative burden, which comes with the duties and responsibilities of GST registration.
• Businesses must learn and continuously update themselves on the complex and frequently changing issues of GST so that they can self-issue GST invoices, declare and pay on time and accurately.
• Businesses have to pay a service fee to an accountant or professional to do this work, which in some cases can be a high cost.
• A GST registered business can increase its selling price by 9%. If its customers are not registered for GST, the tax it has already collected will not be refunded. Therefore, although the business’s costs are reduced due to the GST offset, its selling price may be higher than that of its competitors who are not registered for GST.
• GST can be a burden for low-revenue businesses, especially during periods of high inflation, when a 9% tax is levied on the daily increase in prices of goods.

Below are the basic steps in the GST registration process in Singapore:

Step 1: Determine the type of GST registration

Businesses need to determine whether it is mandatory or voluntary for them to register for GST.

Step 2: Prepare GST registration documents

• Businesses need to prepare all necessary documents for GST registration.
• Businesses should pay attention to the format and size of document files to ensure smooth submission.

Step 3: Submit online application

• Businesses can file their GST registration online via IRAS's myTax system: mytax.iras.gov.sg.;
• To apply online, Businesses need a Corppass account.
• During the application process, Enterprises must provide complete and accurate information as required by the system.
• Businesses also need to attach previously prepared supporting documents.

As a business incorporated in Singapore, the Business needs to manage and control invoices and vouchers well and continuously monitor the revenue subject to GST. The Business is required to register for GST if the Business is subject to mandatory GST registration.

As a GST registered business, the Business needs to:

• Businesses are responsible for collecting GST on goods and services supplied, and remitting GST to IRAS.
• Businesses can charge GST on the selling price or by providing a GST-inclusive price.
• When conducting commercial business, Enterprises must display and quote prices inclusive of GST in all places of price display, advertising, public communication, etc., either verbally or in writing. Failure to display prices inclusive of GST to the public will be considered a violation of the law and subject to penalties. However, for goods and services subject to service charges (in the F&B industry), the displayed price may not include GST.
• When providing services to customers and receiving payment, Businesses must issue GST invoices.
• This invoice contains information about the goods sold and the corresponding GST charged. GST invoices must be retained for at least 5 years as a Business record. Note that tax invoices do not need to be filed at the same time as the GST return. Generally, tax invoices are issued within 30 days of the sale of goods. Tax invoices do not need to be issued for 0% tax, duty-free goods and customers who are not registered for GST.
• When GST is paid, the Business must print a receipt invoice for the taxpayer if the Business does not issue a tax invoice or a simplified tax invoice.
• Businesses must keep all documents in all business transactions because it will affect tax declarations later. In addition, keeping a GST account (a summary of total input and output taxes in each accounting period) will make tax declarations easier.
• Input tax declaration should be made in the accounting period according to the date on the tax invoice or import license.

All GST returns must be filed via mytax.iras.gov.sg within one month of the end of each accounting period. Businesses can check their filing dates on the myTax Portal.

If there is no transaction, the Business is still required to file a “NIL” GST return.

Failure to file a GST return is an offence that can result in a fine of up to SGD 5.000 and, if late, imprisonment of up to 6 months.

Tax payable must be paid within 1 month of the end of each accounting period (on the date of filing of GST return). If the Business is participating in the GIRO scheme for GST payment, GIRO deduction will take place on the 15th of the month following the payment due date.

In case of late payment of tax, a penalty of 5% will be applied on the unpaid tax amount at the due date. If after 60 days from the due date of the accounting period, the taxpayer has not paid all the tax and fines incurred, a penalty of 2% per month on the outstanding tax and fines will continue to be charged (up to a maximum of 50% of the unpaid tax).

Businesses must retain all business and accounting records for at least 5 years even if the Business has ceased trading or deregistered for GST.

No. Businesses only need to register for GST and collect GST if their annual taxable turnover exceeds SGD 1 million.

Yes. The GST collected from customers is called output tax. The GST paid to suppliers is called input tax. Businesses only need to pay the difference between output tax and input tax to the tax authorities.

No. Only GST-registered businesses can collect GST

No. Exported goods and services are taxed at 0% GST, meaning they are not subject to GST.