GST is Singapore’s consumption tax, also known as the Goods and Services Tax (GST). This article will detail the general GST registration process, as well as specifics related to GST registration for overseas entities and joint ventures.
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Singapore Company GST Registration Process
The detailed process for GST registration depends on the business’s registration type and company structure. The entire application process can be completed on the Inland Revenue Authority of Singapore (IRAS) website, but it is advisable to familiarize yourself with the following steps and prepare all necessary documents before applying.
Step 1: Determine the GST Registration Type
GST registration in Singapore is divided into two categories: compulsory registration and voluntary registration. Therefore, you must first determine your GST registration type.
Compulsory Registration
You must register for GST under the following circumstances:
- Your business has a turnover of more than S$1 million in the past 12 months, which is known as the retrospective basis.
- Your business is currently making sales and can reasonably expect its turnover to exceed S$1 million in the next 12 months, known as the prospective basis. This includes any signed agreements or contracts that will result in expected revenue of more than S$1 million in the next 12 months.
When your business revenue exceeds S$1 million, you need to submit a GST registration application to IRAS within 30 days. Failure to register with IRAS within the stipulated timeframe will result in penalties.
Voluntary Registration
If your business is not obligated to register compulsorily, you may choose to register for GST voluntarily, depending on your business operations. Your business must have a plan to make sales or have already started making sales (taxable supplies) in Singapore. If you choose to register for GST voluntarily, there are other conditions to meet.
Once you voluntarily register, you must remain registered for at least two years, comply with GST regulations, file your GST returns on time every quarter, and keep all records for at least five years, even if your business has ceased and you have deregistered for GST. You may also have to comply with any other conditions imposed by the tax authorities.
Step 2: Complete IRAS’s e-Learning Course
The IRAS e-learning course provides basic knowledge about the GST system, enabling businesses to correctly identify the GST treatment for common situations. It also includes an explanation of the GST return submission process, compliance tips, and an overview of a taxpayer’s obligations.
For businesses registering for GST voluntarily, a company director, sole proprietor, partner, trustee, or the preparer of the GST returns must complete the “Overview of GST” e-learning course on the IRAS website and pass the quiz within it.
This step can be waived under the following circumstances:
- The company director, sole proprietor, partner, or trustee has experience managing other existing GST-registered businesses;
- The person preparing the GST returns is an Accredited Tax Advisor (ATA) or an Accredited Tax Practitioner (ATP); or
- The business will be registering under the simplified pay-only registration regime for overseas vendors.
Step 3: Submit the GST Registration Application
All GST registration applications and related supporting documents must be submitted online via the IRAS website.
Important Notes
- Your business must first obtain Corppass authorization to access the GST registration digital service on the IRAS website. (Corppass authorization is a prerequisite for using any of IRAS’s digital services, such as e-filing for corporate tax, e-submission of employment income, etc.)
- You will need to attach supporting documents at the final stage of the application process. Therefore, it is best to prepare the required documents before starting the application.
- In the case of voluntary GST registration, you will also need to sign up for GIRO for the payment and refund of GST.
Step 4: Wait for IRAS to Process the GST Registration Application
IRAS typically takes 10 working days to process a GST registration application. During this period, they may request more information and supporting documents. They may also ask the business to provide a security deposit from a designated financial institution to supplement the GST registration application documents. The application may be treated as withdrawn if information is incomplete or supporting documents are insufficient.
Step 5: Receive Notification of the Effective Date of Registration
If the GST registration application is successful, a letter from IRAS will be sent to the company’s registered address, which includes:
- Your business’s GST registration number
This number must be printed on invoices, credit notes, and receipts; and - The effective date of your business’s GST registration
This is the date you must start charging GST on your taxable goods or services. You must not charge GST before the effective date of your GST registration.
Additionally, a digital copy corresponding to the letter’s content will be available on the IRAS website.
If a local Singapore mobile number or email address was provided during the application process, you will also receive an SMS or email notification of the successful GST registration.
GST Registration for Overseas Companies
An overseas company is a company that has neither a place of business nor a fixed establishment in Singapore, nor does it usually reside in Singapore.
Suppliers of Imported Goods to Singapore
The following options for GST registration are available:
- Option 1: You can import the goods into Singapore and supply them in your business’s name. GST registration is compulsory if your taxable supplies in Singapore exceed the S$1 million threshold. If you do not exceed this threshold but are able to fulfill the duties of a GST-registered business, you can consider voluntary GST registration to claim back input tax.
When an overseas entity registers for GST, it must appoint a local agent in Singapore. - Option 2: You can appoint a Singapore agent to import the goods into Singapore and supply them in the agent’s name. In this case, the supply of the imported goods will be treated as the agent’s own taxable supply, and therefore the responsibility for declaring GST will be transferred to the agent, and the overseas entity will not need to register for GST.
Overseas Vendors, Electronic Marketplace Operators, or Re-deliverers Registering for GST under the Overseas Vendor Registration Regime
Overseas vendors, electronic marketplace operators, or re-deliverers registering for GST under the Overseas Vendor Registration (OVR) pay-only regime need to submit their application using the OVR form.
While you are not required to appoint a local agent to handle your tax affairs in Singapore, you may be required to provide a security deposit in certain cases if you register for GST voluntarily.
GST Registration for Joint Ventures
Joint Ventures are entities where two or more parties (members) jointly undertake a specific business activity.
Joint Ventures Registered with ACRA
Joint ventures registered with the Accounting and Corporate Regulatory Authority (ACRA) in Singapore can register for GST following the process described above.
Joint Ventures Not Registered with ACRA
Joint ventures not registered with ACRA need to meet all the following conditions before they can register for GST:
- The joint venture must be a separate, organized entity with written evidence that governs its constitution, objectives, rules, and business activities. Written evidence includes partnership agreements, joint venture contracts, deeds, and letters of undertaking;
- The members are carrying on a joint business under the joint venture;
- The business of the joint venture involves making taxable supplies;
- Each member is participating in the business carried on by the joint venture;
- One of the members is appointed and authorized by the other members as the representative member to fulfill the administrative requirements of filing and paying GST for the joint venture, as well as undertaking other GST obligations.
Non-Resident Joint Ventures
If all members of the joint venture do not have a usual place of residence in Singapore, the venture must appoint a local agent in Singapore to handle all GST matters.
A non-resident joint venture must submit a formal letter appointing the local agent.
Frequently Asked Questions
Under what circumstances will I be required to provide a security deposit for GST registration?
IRAS conducts a risk assessment when reviewing GST registration applications and may require a business to submit a security deposit to support its application. The required security deposit period is typically 2 years.
Can I start collecting GST after submitting the GST registration application form?
No. You can only start collecting GST after the effective date of your GST registration.
After your GST registration application is successful, you will receive a letter notifying you of this date, at which point you can start collecting GST.
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