Registering for the Goods and Services Tax (GST) is an essential step for businesses operating in Singapore. GST is a consumption tax levied on the supply of goods and services and is currently set at 7%. Registering for GST allows companies to collect tax on behalf of the Singaporean government and claim input tax credits. In this article, we will outline the steps involved in setting up a new company for GST in Singapore.
Understanding the GST Registration Requirements
To register for GST in Singapore, a company must meet certain criteria. The first requirement is that the company’s annual taxable turnover exceeds or is expected to exceed S$1 million. Additionally, a company can voluntarily register for GST even if its turnover is below the threshold. However, it’s important to note that once registered, the company must remain registered for at least two years.
Preparing the Required Documents
Before proceeding with the GST registration process, companies need to gather the necessary documents. The documents typically include the following:
- Business profile or ACRA (Accounting and Corporate Regulatory Authority) Business Profile
- Information on the company’s business activities and transactions
- Bank account details
- A copy of the company’s Memorandum and Articles of Association (MAA)
- Particulars of the company’s directors, shareholders, and partners
- Particulars of the company’s employees
- Details of the company’s accounting period and accounting system
- Any other relevant supporting documents
Applying for GST Registration
Once the required documents are in order, companies can proceed with the GST registration process. The following steps outline the application process:
- Log in to the myTax Portal: Companies should access the Inland Revenue Authority of Singapore (IRAS) website and log in to the myTax Portal using their CorpPass credentials.
- Access the GST registration application form: Within the myTax Portal, locate the “Register for GST” option and access the GST registration application form.
- Fill in the required details: Companies must provide accurate information regarding their business activities, turnover, and accounting details. It’s essential to review the form thoroughly before submission.
- Submit the application: Once the application form is completed, submit it electronically through the myTax Portal. The company will receive an acknowledgment upon successful submission.
After submitting the GST registration application, the company should be aware of a few post-registration procedures:
- GST registration outcome: The IRAS will review the application and inform the company of the registration outcome within ten working days. If approved, the company will receive a letter of notification with its GST registration number.
- Issuing tax invoices: Registered companies must issue tax invoices for taxable supplies made and keep proper records of these invoices. You may also want to take note of this in your Xero accounting software which your accounting firm can assist with.
- Filing GST returns: Registered companies are required to file their GST returns regularly, generally on a quarterly basis. These returns include the declaration of output tax collected and input tax claimed.
Registering for GST is a vital step for new companies operating in Singapore. By understanding the registration requirements, gathering the necessary documents, and following the application process, businesses can successfully register for GST. Compliance with GST regulations ensures that companies can collect and remit the appropriate taxes while enjoying the benefits of input tax claims.