Setting up a Singapore subsidiary? Understanding GST obligations early prevents costly penalties and backdated tax liabilities. Here’s what you need to know.
What is Singapore GST?
Goods and Services Tax (GST) is Singapore’s version of value-added tax (VAT). It applies to most goods and services sold in Singapore.
9%
Standard GST Rate
(since 1 Jan 2024)
0%
Zero-Rated Supplies
(exports, international services)
How it works: GST-registered businesses collect GST on their sales (output tax) and can claim back GST on their business purchases (input tax). The difference is remitted to the Inland Revenue Authority of Singapore (IRAS).
Comparison with Hong Kong: Unlike Hong Kong, which has no sales tax or VAT, Singapore requires businesses above a certain threshold to register for and collect GST. This is a key compliance difference for Hong Kong companies expanding to Singapore.
When Must You Register for GST?
GST registration becomes mandatory when your Singapore company’s taxable turnover exceeds S$1 million. IRAS assesses this threshold using two methods:
1. Retrospective View (Looking Back)
Did your taxable turnover exceed S$1 million at the end of any calendar year (1 Jan – 31 Dec)?
- Deadline: Register within 30 days of year-end (by 30 January)
- GST effective date: 1 March of the following year
Example: Turnover exceeds S$1M on 31 Dec 2025 → Register by 30 Jan 2026 → GST starts 1 Mar 2026
2. Prospective View (Looking Forward)
Do you reasonably expect your taxable turnover to exceed S$1 million in the next 12 months?
- Deadline: Register within 30 days of making the forecast
- GST effective date: 2 months from the forecast date (for registrations from 1 July 2025 onwards)
Example: You sign a major contract in August 2025 that will push turnover above S$1M → Register within 30 days → GST starts 2 months after forecast date
⚠️ Important: “Taxable turnover” includes standard-rated supplies (9%) and zero-rated supplies (0%), but excludes exempt supplies and out-of-scope transactions. Export sales count toward the threshold, even though they’re zero-rated.
How to Register for GST in Singapore
GST registration is completed online through IRAS’s myTax Portal. Here’s the process:
Complete e-Learning Module
Directors must complete IRAS’s “Overview of GST” e-learning course and pass the quiz. This ensures you understand your GST obligations.
Prepare Required Documents
ACRA business profile, financial projections (for prospective registration), and supporting documents for your turnover calculations.
Submit Application via myTax Portal
Log in using CorpPass and submit your GST registration application with all required information.
Set Up GIRO for Payments/Refunds
Link a Singapore bank account for GST payments and any refunds you may be entitled to.
Receive GST Registration Number
Most businesses receive their GST registration number within 3 weeks of application.
📋 New Requirement (from Nov 2025): Newly incorporated companies registering voluntarily for GST must use InvoiceNow-ready software to transmit invoice data directly to IRAS. This requirement extends to all new voluntary registrants from April 2026.
GST Filing Requirements
Once registered, you must file GST returns quarterly through the myTax Portal. Each return covers a 3-month accounting period.
Quarterly Filing Deadlines
| Accounting Period | Filing & Payment Deadline |
|---|---|
| January – March (Q1) | 30 April |
| April – June (Q2) | 31 July |
| July – September (Q3) | 31 October |
| October – December (Q4) | 31 January |
What to Report
- Output tax: GST collected on your sales
- Input tax: GST paid on your business purchases
- Net GST payable/refundable: Output tax minus input tax
Record-Keeping Requirements
You must maintain GST records for 5 years, including:
- Tax invoices issued and received
- Receipts and accounting records
- Import and export documents
- Bank statements and contracts
Special Rules for Foreign Companies
Hong Kong companies operating in Singapore face additional GST requirements:
GST Fiscal Representative Requirement
Foreign companies registering for GST in Singapore must appoint a local GST fiscal representative who is jointly responsible for ensuring compliance with Singapore’s tax obligations. This representative must be:
- A Singapore citizen, permanent resident, or entity
- Approved by IRAS
- Jointly liable for GST obligations
Overseas Vendor Registration (OVR) Regime
Foreign businesses selling goods directly to Singapore consumers may be subject to the OVR regime if:
- Global turnover exceeds S$1 million, AND
- Sales of low-value goods (≤S$400) to Singapore exceed S$100,000
Under OVR, you must register for GST and collect 9% on sales to non-GST-registered customers in Singapore.
Penalties for Non-Compliance
IRAS takes GST compliance seriously. In a recent fiscal year, IRAS completed over 2,800 audits and recovered more than S$205 million in penalties and back taxes.
Late Registration
- Registration backdated to when you should have registered
- GST payable on past sales (even if not collected from customers)
- Fines up to S$10,000
- 10% penalty on unpaid GST
Late Filing / Payment
- 5% immediate penalty on outstanding amount
- Monthly compounding interest charges
- Court summons for persistent non-compliance
Incorrect Claims
- Repayment of incorrectly claimed input tax
- Penalties for fraudulent claims
- Potential prosecution
Voluntary disclosure: If you realize you’ve missed a deadline or made an error, voluntary disclosure to IRAS may help reduce or waive penalties.
Should You Register Voluntarily?
If your turnover is below S$1 million, you can still choose to register for GST voluntarily. Here’s when it makes sense:
✓ Benefits
- Claim input tax: Recover GST paid on business expenses
- Professional image: GST registration signals an established business
- B2B advantage: GST-registered clients can claim your GST as their input tax
- Export-heavy businesses: Claim GST on purchases while zero-rating exports
✗ Considerations
- 2-year lock-in: Must remain registered for at least 2 years
- Compliance burden: Quarterly filing and record-keeping requirements
- Price competitiveness: Your prices effectively increase 9% for non-GST-registered customers
- Administrative cost: Time and resources for GST accounting
Exemption from registration: Even if you exceed S$1 million, you may apply for exemption if 90% or more of your supplies are zero-rated (e.g., primarily an export business).
Common GST Mistakes to Avoid
- Assuming overseas sales don’t count: Zero-rated export sales still count toward the S$1 million threshold.
- Incorrect zero-rating: Just because your client is overseas doesn’t automatically mean the sale is zero-rated. Services must qualify as “international services” under Section 21(3) of the GST Act.
- Claiming disallowed expenses: You cannot claim GST on medical insurance for employees, club memberships, or private car expenses.
- Splitting businesses to avoid registration: IRAS will aggregate turnover if businesses are artificially split to stay below the threshold.
- Poor record-keeping: Inadequate documentation for input tax claims can result in rejected claims and penalties.
Frequently Asked Questions
What is the GST registration threshold in Singapore?
Businesses must register for GST if their taxable turnover exceeds S$1 million in a 12-month period, assessed either retrospectively (past calendar year) or prospectively (expected in next 12 months).
How long does GST registration take?
Most businesses receive their GST registration number within 3 weeks of submitting a complete application through the myTax Portal.
Can a Hong Kong company register for Singapore GST?
Yes, but foreign companies must appoint a local GST fiscal representative who is jointly responsible for GST compliance. This representative must be approved by IRAS.
How often do I need to file GST returns?
GST returns are filed quarterly. The deadline is the last day of the month following each quarter (e.g., Q1 Jan–Mar deadline is 30 April).
What happens if I miss the GST registration deadline?
IRAS will backdate your registration, meaning you’ll owe GST on past sales even if you didn’t collect it from customers. You may also face fines up to S$10,000 plus a 10% penalty on unpaid GST.
Do export sales count toward the S$1 million threshold?
Yes. Export sales are zero-rated (0% GST), but they still count as taxable supplies toward the registration threshold.
How long must I keep GST records?
GST records must be retained for 5 years. This includes tax invoices, receipts, import/export documents, and accounting records.
Need Help with Singapore GST Compliance?
GST registration is just one part of setting up operations in Singapore. We help businesses navigate compliance, from company registration to ongoing tax filings.
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