Are you a business owner?
Or do you just want to know about GST filing in Singapore?
Here is a guide that will explain everything you would want to know about GST or tax filing Singapore. Just read on and thank us later!!
What Is GST?
You might know that GST is short of General Sales Tax but you might not know that GST is charged on everything that you buy from the market. From yogurt to mobile phone, the seller charges you a fixed percentage of GST (it might be included in the total cost or you may be charged separately).
In other countries, GST is also referred to as Value Added Tax (VAT). Different countries charge a different percentages of tax. In Singapore, the rate of GST is 7%. So, if you buy a product from the market worth $100, you will be charged $107. $100 is the worth of the product and $7 is the GST or VAT charged for it.
The seller then submits all the GST collected from consumers to the Government through the GST filing system.
Who Should File GST?
Not every seller is required to file GST. There are a few requirements that must be met for you to qualify for GST filing Singapore. So, you must monitor your business and file GST whenever you feel you have qualified for it.
In Singapore, there are two types of GST filing. Here is an overview of both types:
1. Compulsory GST Registration
If your business has earned or is expecting to earn more than $1 million in financial, you are obliged to register for GST Filing Singapore. The first scenario is called retrospective basis, in which you must register for GST filing if your revenue is more than $1 million.
The latter is called prospective basis. On a prospective basis, you will file for GST if you expect your business to generate revenue of more than $1 million in the following financial year. You can prove it with signed contracts and agreements.
2. Voluntary GST Registration
If you do not fulfill the above criterion, you can still file GST and it is called voluntary GST filing. To register for voluntary GST, you will have to submit an F1 form along with other required documents to IRAS. And if you are a partnership business, you need to submit an additional F3 form as well.
However, voluntary GST filing is not as easy as it seems. Once you have registered for voluntary GST filing, you cannot drop out until 2 years. You will have to file GST regularly and maintain records (for 5 years).
What are the benefits of GST filing Singapore?
You might be thinking why voluntarily file GST when you can save tax??
Well, GST tax filing in Singapore is beneficial for your business. Firstly, when you file for GST, your operational cost or expenses go because YOU don’t have to pay the taxes the consumer is paying all the taxes. Not only this, but you can also claim taxes you have paid in procurement.
Secondly, consumers consider a GST filing company more legitimate in comparison with companies that are not GST registered. So, your sales are expected to go up after filing GST.
When Can I File My GST?
You are obliged to file your GST returns one month after the end of the accounting period. However, if you are on the GIRO plan, your GST tax returns are due on the 15th day. That means if your financial period ends on 30th December, you must file your GST returns before the 15th of January. You can also refer to the acknowledgment page on the IRAS website for your GST tax filing Singapore due dates.
If you fail to file your GST tax returns on the due date, you will face penalties.
What Is The Process Of Filing GST?
You can easily file your GST returns through the online portal of IRAS. Here are the steps:
- First, you need to authorize a user for GST filing (if you have not already done so). It can be a third party or you can do it yourself also.
- Next, you will log in to my Tax Portal using your signpass and file your GST returns.
- After filing your GST returns, you will be directed to an acknowledgment page. It has all the information of when your due date and what is the payable amount is. Save a copy of this page and pay your tax before the due date.
You can refer to the IRAS guide for more information.
Tax Filing Singapore With WZ WU & Partners
Do you feel the tax filing process is too complicated and you cannot do it??
WZ WU & Partners is here to help you!! We know the complexities of tax filing in Singapore and our expertise in tax filing will help you save time and energy. Our GST services include:
- GST registration (Compulsory / Voluntary)
- GST Filing
- GST de-registration
- Resolving GST issues
Feel free to contact us for more information regarding our tax filing services. We are here to help you any time you want.
