The good sense services tax or GST is the tax charged on imported goods or other goods and services supplied across Singapore. Understanding the importance of GST is crucial as Singapore based company is liable to GST if its total revenue is at least $1 million per year. When it comes to GST registration, the whole process can be daunting and requires expertise. Any mistake while filing the tax will lead to unwanted penalties.
Are you struggling with GST registration? Don’t worry, we are here to guide you through the process and make it much simpler for you. At WZWU, we have professional accountants who will manage everything for you so you can stay focused on your business growth.
What is meant by GST Registration for Singapore Companies?
As mentioned earlier, GST refers to the tax which Singapore-based companies collect from their clients which is then forwarded to the Inland Revenue Authority of Singapore. The current rate of GST is 7% which must be paid to the IRAS. In order to pay tax, the company must have a GST number which is issued when a company applies for GST registration.
Procedure for Registration
If you want to get a GST number for your company, then you must follow the following steps:
– Determine whether you are eligible to apply for GST registration (If you are applying voluntarily then you need to complete two e-learning courses)
– Submit the application with the required documents to IRAS. (Keep in mind that if your application is being processed you might be asked for additional information)
– Once your application is processed, you will finally receive the notification of registration at the company’s registered address.
What is the Importance of Company GST Registration in Singapore?
Goods and services tax is the most efficient tax which plays a role in stabilizing the economy of the country’s gross domestic product. When companies register for GST, it allows the government to decrease personal income taxes leading to increase economic growth. Moreover, it will encourage foreigners to invest in the country.
In the case of companies both large and small organizations benefit from GST. If your business is GST registered it will ensure your customers that your business is established. It also reduced the overall cost of your business resulting in lower prices. Similarly, self-employed individuals also enjoy multiple benefits from GST registration.
If you need any assistance with GST registration in Singapore, you can get advice from our accountants.
Do you need to Register Your Company for GST?
Don’t know if you need to register your company for GST? Let’s get into details and find out if you are liable for GST registration or not.
Compulsory registration
If a business in Singapore is generating turnover above $1 million or is expected to reach this target in the coming year, then it is compulsory for them to register for GST.
Voluntary Registration
Businesses can voluntarily register themselves for GST even if their turnover is less than $1 million. In this case, the business will get approved only if they are fulfilling IRAS requirements.
Exemptions
In some cases, even if a business is generating a turnover above $1 million, there are exempted from GST registration. It is probably because the respective business offers international services or export goods overseas.
GST Registration and Approval Time
Following are some of the important information that you should know regarding Singapore Company GST registration.
– It takes about 30 minutes to fill up the GST registration application.
– Compulsory registrations are approved within two business days whereas voluntary Applications take about end business days.
NOTE: A company must register within 30 days once it becomes liable for GST registration.
Penalties for Delayed GST Payment
If a Singapore company is GST registered, then it is necessary for the respective company to make the payment within one month after the accounting period has ended. If for some reason, the company fails to make the necessary payment it will be charged with a 5% penalty. Note that an additional 2% penalty will be imposed each month if the GST remains unpaid prior to the implementation of the 5% penalty.
To find out more information about penalties, you can get in touch with our accountants.
Why Choose Us?
WZWU is a renowned accounting firm that will help you throughout company GST registration in Singapore. With our tailored support, the whole process of registration will become much simpler. Our certified accountants will manage the entire process in compliance with IRAS regulations. They will ensure that your GST returns are filed timely and your business does not have any outstanding tax payments.
Feel free to contact us if you need any help with GST to registration or returns, we would be happy to work for you.
