Goods and Services Tax (GST) Registration in Singapore

Business establishments in Singapore are required to pay the GST annually to the Inland Revenue Authority of Singapore (IRAS). If you have a company or plan to establish one in Singapore, you need to know about what GST is.

GST is equivalent to value-added tax in other countries. It is an indirect tax levied on most goods and services sold for domestic consumption. GST is charged to end consumers by GST-registered businesses. Business owners are responsible for

1. 1. Charging and collecting the GST from its customers
   2. Paying the tax to IRAS

As of January 1, 2023, the GST rate will be increased to 8%, and in 2024; it will increase to 9%. 

While some might think that the increase in GST is not appropriate at this time when inflation is high, the raise in GST actually supports public spending that benefits Singaporeans. The inflation rate might be uncertain in the future, however with the effort from the government to tighten monetary policy, it is forecasted that the inflation rate with decrease or stabilized.

The government will absorb GST for publicly subsidized healthcare and education. Moreover, the government rolls out the GST Voucher scheme to help lower and middle-income Singaporeans to offset part of their GST expenses.

It is estimated that the GST 1% hike will increase government revenue by S$1.8 billion which is equivalent to 0.3% of GDP annually. The government believes that the GST increase helps to strengthen Singapore’s social safety nets, enhance competitiveness and create new capabilities in a highly digitalized global economy. 

For business owners, in preparation for the GST rate change, you may need to modify your point-of-sale, invoicing, accounting, and other systems as well as the price displays to reflect the new rate.

For non-GST, registered businesses might want to register voluntary GST registration to mitigate the increase in the rate to recover the GST incurred on expenses. You may choose to register voluntarily after careful consideration.

GST Registration Process in Singapore

Step 1: Type of GST registration 

You need to determine if you are applying for compulsory or voluntary GST registration

• Under the retrospective view, more than $1 million at the end of the calendar year, or
• Under the prospective view, expected to be more than $1 million in the next 12 months 

Step 2: E-learning course

Business owners are encouraged to complete e-learning courses that provide basic knowledge of the GST regime. For voluntary registration, it is a must to complete the course “Overview of GST” and pass the quiz.

Step 3: Submit your application

All applications for GST registrations and relevant documents must be submitted online.

Things to note: 

• You must be first authorized in Corppass to access the GST registration digital service. 

We can help you to register for Corppass, feel free to contact us

• Supporting documents must not exceed 223kb in a form of a PDF
• For voluntary basis registration, you need to sign up for GIRO for your GST payment and refund.

Step 4: Processing of GST registration application

Supporting documents might be needed to support your GST registration applications. The GIRO application form will be sent to your bank for approval and it will take around 3 weeks for approval.

Step 5: Notification of effective date of registration

Upon approval of your GST registration, you will receive a letter to your registered address. The letter will contain:

• Your GST registration number (must be included in your invoices, credit notes, and receipts)
• Your effective date of GST registration (this is the date when you must charge collecting GST)