In the ever-changing business landscape in Singapore, comprehension of value-added tax (VAT ) -locally referred to as goods and services tax-is paramount to enjoying the advantage of businesses operating in such a city-state arena. This guide provides particulars that enable you to confidently confront the taxing puzzle of compliance.

What is VAT/GST in Singapore?

GST in Singapore is a consumption type of a broad-based tax levied on the import of goods, provision of services, or sale of goods in Singapore. At 8%, this tax rate falls squarely within Singapore’s strong tax structure, which is a major source of revenue for the nation. 

GST Registration Requirements

All businesses must register for Goods and Services Taxes if the taxable turnover for the last 12 months exceeds SGD 1 million or is expected to exceed SGD 1 million in the next 12 months. However, businesses with turnover below this threshold may also register voluntarily.

Other Key Criteria of Registration:

Also Read  : Navigating the CDAC Contribution Rate: A Comprehensive Overview

VAT Singapore/GST: Filing Returns in Singapore

Filing Process

GST returns are usually filed via the online GST system set up by the Inland Revenue Authority of Singapore on a quarterly basis. The businesses are required to file their returns within one month from the date following the end of each accounting period.

Required Documents 

Calculating GST

The standard GST calculation comes down to the following step:

The applicable tax rates are:

Also Read : IRAS Tax Filing Tips For Singapore 2025

VAT Singapore: Common Compliance Challenges

Input Tax Recovery 

A business can recover input taxes on purchases of goods and services for business purposes, but certain restrictions do apply, and adequate documentation is a must.

Record Keeping

Ensure proper, detailed records have been kept for at least 5 years, to accompany any audits that may follow.

Penalties for Non-Compliance

Failure to comply with the requirements set out by the GST Act may incur:

Compliance Checklist Illustration

vat singapore

General Guidelines for VAT/GST Management

  1. Keep updated with changes in the legislation.
  2. Tighten and stabilize fiscal structures.
  3. Pursue in-house auditing.
  4. Use the counsel of external experts on taxation as and when needed.

Some Recent Developments

Singapore is set to increase its GST rate to 9% in the near future, highlighting the importance of staying informed about tax regulations.

In Conclusion

Proper management of VAT/GST in Singapore requires much time and hard work. Perhaps one has to place a considerable level of fineness on all details and maintain an active knowledge of local tax regulations. If it is any consolation, the business should master tax administration accordingly.

Disclaimer: Tax regulations can change. Always consult with a qualified tax professional for the most current advice specific to your business situation.

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