GST in Singapore: What Business Owners Need to Know

Goods and Services Tax (GST) is a crucial part of business operations in Singapore. Whether you’re establishing a new company or looking to expand, understanding how GST works is essential for staying compliant and avoiding costly penalties.

In this article, we’ll provide an overview of what GST is, its exemptions, requirements, and registration steps with Singapore’s MyTax portal.

What is the Goods and Services Tax (GST)?

The Goods and Services Tax (GST) is a value-added tax imposed on most goods and services in Singapore. With effect from January 1, 2024, the standard GST rate is 9%. If your business is registered for GST, you are legally required to charge this tax to your customers and collect it on behalf of the Inland Revenue Authority of Singapore (IRAS). Regular filing of GST returns is also required to ensure compliance.

Businesses can claim back the GST paid on their own purchases (input tax), offsetting it against the GST collected from customers (output tax). As such, the tax burden ultimately rests with the final consumer.

Who is Required to Register for GST In Singapore? 

Under Singapore’s Goods and Services Tax (GST) Act, you must register for GST once your taxable turnover exceeds SGD 1 million. There are two types of registration:

• Mandatory GST Registration: You are required to register for GST when your taxable turnover crosses SGD 1 million. Under the retrospective view, if your past 12 months’ turnover has exceeded this limit, you must apply for registration by the end of the next month. Under the prospective view, if you expect your turnover to exceed SGD 1 million in the next 12 months, you must apply within 30 days of making this forecast.
  
• Voluntary GST Registration: Alternatively, if your taxable turnover is below SGD 1 million, you can opt for voluntary registration. This is particularly beneficial if your business makes zero-rated supplies, such as exports, as it allows you to claim GST paid on expenses. 

Who is Exempt from GST Registration?

Even if your business exceeds the SGD 1 million turnover threshold, you may not be required to register for GST. It is important to understand these exemptions as they can significantly impact your company’s financial strategy. 

The exemptions include:

1. Zero-Rated Supplies: The “Net Refund” Exemption

This exemption is important for exporters and businesses with a global client base. Zero-rated supplies are taxable at 0%, and GST-registered businesses making these supplies can still claim back the GST they paid on business expenses (Input Tax). You can apply for an exemption from e-filing GST returns every month instead of quarterly or semi-annually if both of the following conditions are met:

• Over 90% of your total taxable supplies are zero-rated (e.g., exports or international services to foreign clients).
• You are in a net refundable position, meaning GST claimed on purchases exceeds GST collected on sales.

2. Out-of-Scope Supplies: International Trade and Logistics

This exemption applies to companies involved in global trade using Singapore as a logistics or holding hub. GST registration is not required for “out-of-scope supplies,” which fall outside the GST Act. Examples of this situation include:

• Third-Country Sales: Goods delivered from outside Singapore to another overseas location.
• Free Trade Zones (FTZs) and Zero GST Warehouses: Supplies within FTZs or Zero GST Warehouses, where GST is deferred until goods enter local consumption.

3. GST-Exempt Activities: Financial Services and Real Estate

Some goods and services are classified as “exempt supplies,” where no GST is charged. Businesses making only exempt supplies are not required to register, even if turnover is high. This matters for those involved in the following business activities:

• Financial Services: Loans, issuance of shares and bonds, and life insurance.
• Residential Property: Sale and lease of residential property.
• Investment Precious Metals: Import and local supply of certain investment-grade metals (e.g., gold bars).

It is important to note that businesses dealing with exempt supplies cannot claim GST paid on related purchases, as it differs from zero-rated supplies.

Documents Required for GST Registration in Singapore

To register for GST, you must submit an online application along with the mandatory documents required by IRAS. In some cases, additional supporting documents are also requested to assess your business eligibility. These documents include:

1. Latest Updated Copy of ACRA Business Profile: A copy of the most recent ACRA Business Profile, including the ACRA Business Profile for each sole-proprietorship business owned.
2. Copies Recent Sales Invoices: Three recent invoices issued to customers, including shipping documents. If fewer than three invoices exist, provide all available invoices.
3. Sales/Revenue Listing: A listing of sales for the past two months showing the date of invoice, invoice number, customer name, description of sales, and invoice amount.
4. Copies of Recent Purchase Invoices: Three recent supplier invoices received, including shipping documents. If fewer than three invoices exist, provide all available invoices.
5. Purchases Listing: A listing of business purchases for the past two months, including date of invoice, invoice number, supplier name, supplier’s GST registration number, description of purchase, invoice amount excluding GST, and GST amount.

Additional IRAS Documentation

The Inland Revenue Authority of Singapore (IRAS) will request additional documentation during the application process, which includes:

1. Business Constitution: Provide your latest ACRA Business Profile and supporting documents such as partnership agreements, incorporation certificates, deeds, or local agent appointments, depending on your business structure.
2. Business Activities: Submit recent sales and purchase listings with supporting invoices, or provide a detailed business plan if you have not yet started operations. Attach relevant licenses or permits if required.
3. Business Transfer: Provide agreements or supporting documents if you have taken over a GST-registered business.
4. Type of Registration: For compulsory registration, submit contracts, tenders, or purchase orders proving taxable supplies or imported services will exceed S$1 million in the next 12 months. For voluntary registration, file the GIRO form and submit the GST e-Learning acknowledgement unless exempt.
5. Letter of Authorisation for GST Agent: You must prepare and provide a Letter of Authorisation on your company letterhead to appoint your GST agent. Under Section 33(1) of the Goods and Services Tax Act, an overseas business is required to appoint a Singapore resident as its local agent to fulfil GST obligations. Emerhub acts as your authorised representative, managing GST filings, monitoring compliance, and handling all correspondence with IRAS on your behalf.

How to Register For GST via MyTax Portal in Singapore

Registering for GST in Singapore can be a complex process, with slight mishaps causing costly delays for your operations. Emerhub’s tax registration experts provide a comprehensive service that handles GST registration with accuracy and efficiency, from MyTax registration to compliance matters.

Our step-by-step GST registration process is as follows:

1. Determine Registration Type and e-Learning: Our business experts will assess whether your business requires mandatory registration or qualifies for voluntary registration. For voluntary registration, we will facilitate the completion of the IRAS e-learning course if applicable to your situation.
2. Corppass Authorization and Portal Access: We will guide you in setting up the required Corppass access to the GST e-Service and, upon authorization, handle the Singpass login process for your company.
3. Application Preparation and Submission: All business details and supporting documents will be compiled and uploaded into the MyTax Portal on your behalf. For voluntary applications, we will submit the GIRO or eGIRO application as well.
4. Processing and Liaison: IRAS will process the application, taking around 10 working days. Our team will track your application and liaise with the IRAS for any queries and updates throughout.
5. Approval and Compliance: Upon approval, IRAS will issue your GST registration number and effective date, marking when you must start charging GST. From here, we will help you to remain compliant with your ongoing obligations, such as filing tax returns on time and maintaining accurate records.

Meet Your GST Obligations in Singapore on Time

Failing to register for GST when required will expose your business to legal enforcement by IRAS, including compulsory registration, fines of up to SGD 10,000, and a penalty of 10% of the GST due. In such cases, the effective date of GST registration will be backdated to the date your business first became liable to register. 

To avoid these risks and potential operational disruptions, you need to meet the following requirements:

1. Adopt E-Invoicing (InvoiceNow): From 1 November 2025, newly incorporated companies that voluntarily register for GST must use the national e-invoicing framework (InvoiceNow/Peppol), with early adoption having begun in May 2025. Our experts at Emerhub can set up an InvoiceNow-ready system for you, ensuring seamless integration with IRAS requirements and your existing finance processes. 
2. Register on Time: Businesses must register within 30 days of becoming liable, which is when turnover exceeds SGD 1 million in the past 12 months or when it is reasonably expected to cross this threshold in the next 12 months. The effective registration date depends on the situation, but generally begins within two months of reaching the threshold.
3. File GST Returns Promptly: Returns must be filed accurately and on time. Each late return attracts an immediate penalty of SGD 200, with an additional SGD 200 added for every full month outstanding, capped at SGD 10,000 per return.
4. Pay GST Without Delay: Late payments carry a 5% penalty on unpaid tax. If left unpaid beyond 60 days, a further 2% per month is added, up to 50% of the outstanding balance.

Need guidance on GST registration in Singapore? Contact us today to set a consultation with our tax experts and strengthen your financial operations.