Since its introduction on 1 April 1994, Singapore’s Goods and Services Tax (GST) has become a vital mechanism for funding public services and supporting Singapore’s economic growth. Originally launched at a rate of 3%, GST has gradually increased over the years, currently standing at 9% as of 2025, reflecting the government’s strategic efforts to balance revenue needs with social investment. This article provides a comprehensive overview of Singapore’s GST.
Table of contents:
- What is GST?
- When must your company register for GST?
- What are the different types of supplies?
- GST Compliance, Filing and Record‑Keeping Requirements
- How Can MBiA Help with GST Filing?
What is GST?
Goods and Services Tax (GST), also known as Value-Added Tax (VAT) in some countries, is a consumption tax that is levied on almost all goods and services, as well as the import of goods in Singapore. Businesses registered for GST charge this tax on taxable supplies and remit the net GST to the Inland Revenue Authority of Singapore (IRAS). The current GST rate has stood at 9% since 1 January 2024.
When must your company register for GST?
Registration of GST can be categorized as compulsory registration or voluntary registration.
Compulsory registration
GST registration is compulsory if:
- Under the retrospective basis: Your taxable turnover amounted to more than S$1 million at the end of the calendar year OR
- Under the prospective basis: Your taxable turnover is expected to exceed S$1 million in the next 12 months. You must register for GST within 30 days of making this forecast.
Under the prospective basis, registration for GST must occur within 30 days from the forecast date, and registration must be completed on the 31st day from the forecast date. Supporting documents such as signed agreements, quotations and invoices will be required to justify forecast value. In case your business fails to register within the time frame, a fine and penalty will be imposed, and you may be liable to prosecution.
You may apply for exemption from GST registration if 90% or more of your taxable turnover comprises zero-rated supplies and the input tax you would claim exceeds the output tax you would charge. IRAS approval is required.
Voluntary registration
You may choose to voluntarily register for the Goods and Services Tax (GST). If you qualify and respect applicable conditions, the main benefit of being registered is claiming GST incurred on your purchases.
However, you should note that a voluntarily registered business must remain registered for 2 years. Also, the business must file quarterly GST returns within the deadline and maintain all records for at least five years even if the business has ceased or deregistered from GST.
How GST Works for Businesses?
A GST-registered business acts as an intermediary collecting GST on behalf of the government:
- Output Tax: GST charged to customers on goods/services sold. This is collected by the GST registered business.
- Input Tax: GST paid on business purchases and expenses. This is paid for by all businesses.
At filing, the business calculates net GST payable to IRAS as:
Net GST = Output Tax−Input TaxNet GST = Output Tax−Input Tax
If Output Tax > Input Tax, pay the difference. If Input Tax > Output Tax, claim a refund.
What are the different types of supplies?
GST typically applies to most goods and services provided by GST-registered businesses to consumers and other businesses in Singapore, regardless of their GST registration status. Singapore classifies supplies into four categories affecting GST application:
| Type of Supply | GST Rate | Description |
|---|---|---|
| Standard-rated | 9% | Most local goods and services subject to GST charge. |
| Zero-rated | 0% | Goods exported or international services; no GST charged |
| Exempt supplies | N/A | Includes financial services, sale or lease of residential properties; no GST charged or claimable. |
| Out-of-scope supplies | N/A | Transactions outside GST law jurisdiction, e.g., private sales outside Singapore. |
Understanding the classification of taxable and non-taxable supplies enables you to identify supplies exempt from GST. Standard-rated and zero-rated supplies are classified as taxable supplies subject to GST, while exempt and out-of-scope supplies are classified as non-taxable supplies that do not attract GST.
GST Compliance, Filing and Record‑Keeping Requirements
To remain compliant under Singapore’s GST regime, businesses must fulfil ongoing obligations beyond registration. This includes filing quarterly GST returns on time, maintaining proper records, understanding which input tax claims are disallowed, and ensuring that all pricing and invoicing practices follow IRAS requirements. By keeping accurate documentation and adhering to GST rules, businesses can avoid penalties, support smooth audits, and maintain a transparent tax position.
Filing Returns and Record Keeping
- GST returns are mostly filed quarterly, unless approval taken from IRAS to file monthly, with deadlines one month after the quarter ends. For example, a return for the quarter ending 31 March is due by 30 April.
- Filing is done via the IRAS myTax Portal using Form F5.
- Even with no sales, a nil return must be filed.
- Businesses must keep all records including invoices and contracts for at least five years, even if deregistered.
- Digital invoicing through IRAS’s InvoiceNow system is now compulsory and part of ongoing regulatory modernization. MBiA ensures that your company is InvoiceNOW compliant.
Disallowed claims
As a registered business, you can claim GST incurred on business purchases, if the conditions for claiming input tax are respected. However, Input tax claims are allowed only for business expenses directly related to taxable supplies. The disallowed claims are as follows:
- Benefits provided to family members or relatives of your employees.
- Costs and running expenditures incurred on company and rental motor cars.
- Sports and recreation clubs’ subscription charges.
- Medical costs for your employees are incurred unless they are mandated under the Work Injury Compensation Act (2019) or under any collective agreement within the meaning of the Industrial Relations Act (1960).
- Medical and accident insurance premiums paid for your employees, unless required under the Work Injury Compensation Act or under any collective agreement within the meaning of the Industrial Relations Act.
- Any transaction involving betting, sweepstakes, lotteries, fruit machines, or games of chance.
Pricing and Compliance Tips
- Singapore law requires all prices displayed to consumers to be GST-inclusive, both online and offline.
- Non-compliance with pricing transparency can lead to fines of up to S$5,000.
- Maintain awareness of deadlines and file returns promptly to avoid penalties which can include fines, compounded interest, or deregistration.
GST compliance impacts your business operations, pricing strategy, and cash flow management. Staying updated with the latest IRAS regulations and leveraging digital tools like InvoiceNow enhances efficiency and reduces non-compliance risks. Whether new or established, effective GST management ensures peace of mind and allows focus on business growth.
How Can MBiA Help with GST Filing?
Filing and managing GST can be complex, especially as IRAS regulations evolve. MBiA provides comprehensive GST registration, quarterly filing, reconciliation, and audit support designed for startups, SMEs, and expanding regional businesses. Our experts ensure your GST submissions are accurate, timely, and fully compliant while helping you claim all eligible input taxes to optimize your business’s cash flow.
Our team combines professional tax expertise with a digital-first approach, providing seamless and paperless filing through secure platforms. Whether you need help registering for GST, reviewing historical filings, or setting up automated reporting, MBiA ensures peace of mind every step of the way. Contact us today to learn how our team can simplify your GST compliance and keep your business fully aligned with Singapore’s tax standards.
FAQs
How do I file GST returns?
GST returns can be filed with IRAS through the myTax Portal, reporting output tax collected and input tax paid. Returns must be filed within one month of the quarter end to avoid penalties.
Can I claim input tax for all my business expenses?
No. Firstly your business should be GST registered. Input tax claims are allowed only for business expenses directly related to taxable supplies. Some expenses like employee benefits, motor vehicle costs, and exempt supplies do not qualify for input tax claims.
Is there a GST relief for imported goods bought online or overseas?
Goods arriving by air worth up to S$400, excluding liquors and tobacco, are exempt from GST when imported. Goods above this value attract GST at the current rate, payable upon arrival or at the point of sale for online purchases.
