Registering a business in Singapore comes with filing tax returns. It becomes a daunting task for business owners at times, as filing taxes requires submitting various forms and uploading details. However, it is essential to get it right for compliance with the IRAS rules & regulations in Singapore.
In this article, we have covered everything you need to know about GST filing Singapore. So, read on!
What Is GST?
GST is a expenditure or utllization-based, value-added tax which is applied to the supply of goods & services availed within Singapore. Business owners are supposed to collect this tax on the behalf of the government. The consumers of the goods pay the GST, The current GST rate in Singapore is almost 8%.
Who Should Register For the GST?
All the businesses in Singapore that have a turnover of $1.0 million annually must register to file GST returns. If the taxable return is less than 1 million, even then companies can choose to file for GST voluntarily.
Filing for GST depends on the company’s accounting period. After one full calendar year, business owners must file for GST within 30 days. Failing to do so can lead to penalties.
GST Filing Forms
Three GST filing forms are crucial for business owners to understand for filing taxes.
GST F5 – This is the form where you give an account of all your transactions that happened within the time you are filing for GST.
GST F7 – You can indicate any errors in this form that might have occurred during the previous GST filings to correct them.
GST F8 – This form allows you to submit details of output tax on your assets after the company’s registration has ended.
Steps To File GST
Here we have mentioned the entire process of GST filing in Singapore:
Step 1: Authorization Of Users For GST E-Filing
This step is required by new business owners or the ones who are changing their authorized tax return agent. You need to register an account for your business and get it authorized by Corppass for the GST-registered business.
Corppass (Singapore Corporate Access) is the only corporate entity that allows business owners to transact online with the government. If the business owners appoint agents for the tax returns, their accounts should also be authorized by Corppass.
Step 2: Upload All The Supporting Documents
After registering and getting access to the account for filing GST, business owners need to upload all the supporting documents. So, you must keep your documents ready in electronic form before submitting the application.
Step 3: Log Into The myTax Portal Account
After the account has been account, you can log in to your myTax Portal account using your ID and password under “Business Tax Matters” to file for your GST. myTax Portal is a safe, confidential, and personalized portal account to access and manage all the tax filing and returns with IRAS.
Step 4: File For The GST
Once you have been directed to the myTax Portal account, go to the “GST” tab. Now, choose “File GST Return/Edit Past Return” from the options on the drop-down menu. Once you have clicked on it, you will be taken to the “File GST Return” Page. On this page, you will file for your GST after checking your outstanding GST tax with a GST F5 return. Fill out the information required for the GST F5 return. You must make sure all the details are factually correct.
Step 5: Submit The Tax Return
Once you are sure about the authenticity of the information, you can save your draft and you can click on the submit button.
Step 6: Acknowledgement Page And Payments
After entering the details, an acknowledgment page will pop up as a confirmation of your successfully submitted details. The acknowledgment number is significant, so make a copy of this page and keep a record of the reference number. You will also find instructions on how to make payment to the IRAS. So, you need to ensure that you send the payment by the due date.
Tips For Filing GST Returns
- Keep your company’s records accurate and correct
- Be aware of different taxes and their procedures
- You must know the taxable GST period for your company
- Learn all the GST rules to avoid penalties and non-compliance
- Seek professional help when in doubt
Take Away
To sum it up, GST filing is mandatory and crucial for businesses operating in Singapore. Businesses need to file taxes on time to avoid any penalties or interest charges. It is essential to keep the records and detail correct and up-to-date. However, if you face any problem in filing GST or understanding the process of filing taxes, you can take help from agencies offering audit services and tax filing. It will save you time and money with the proper filing of GST returns.