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Ignoring GST rules? That’s how businesses in Singapore get into serious trouble.

One year, you file your GST returns manually. Next, you outsource to someone who barely understands the IRAS rules. Then, you skip a return deadline—and suddenly, you’re facing audits, penalties, or worse.

But with the right GST compliance strategy, you can protect your business, reduce risk, and stay focused on growth.

Ready to take control of your GST process?

Let’s start with the foundation: understanding your GST obligations and knowing when registration is required.

What is GST?

Every GST decision you make should map back to your business stage and risk exposure.

Unaware → Concerned → At Risk → Non-compliant

That’s the real-life journey for many business owners in Singapore.

One month, you’re invoicing a few local clients. Next, you’ve crossed $1 million in taxable turnover, and now you’re legally required to register for GST.

Miss that? IRAS penalties are coming.

To avoid fines, prepare early, and operate with full confidence, you first need to understand what GST is in Singapore

GST (Goods and Services Tax) is a broad-based consumption tax on most goods and services sold in Singapore. You may know it as VAT in other countries.

The current GST rate is 9% from 2024 forward.

It’s charged on:

1. Local sales of goods and services
2. Imported goods (collected by Singapore Customs)
3. Digital services provided by overseas vendors

But not everything is taxable. Exemptions include:

1. Financial services
2. Residential property transactions
3. Investment in precious metals
4. Exported goods and international services (zero-rated)

Unlike corporate income tax, GST is collected at every stage of the supply chain, but consumers only pay it once, at the final sale.

Which businesses need to register?

If your taxable turnover exceeds SGD 1 million, registration is mandatory. You must track this on a 12-month rolling basis, not just by financial year.

You might also be liable under special schemes like:

• Reverse Charge Regime (if you import services)
• Overseas Vendor Registration (OVR) (for foreign service providers)

Even if you don’t cross the $1 million threshold, you can choose to register voluntarily—but it comes with compliance responsibilities (filing deadlines, invoicing rules, etc.).

Business status	GST action required
< $1M turnover	Optional (voluntary registration)
> $1M turnover	Mandatory registration within 30 days
Overseas vendor	Must register under OVR rules
Receives imported B2B services	Must account under Reverse Charge

If you’re close to the threshold or expanding into cross-border services, it’s time to get GST-ready. We’ll cover how to register (and when to plan ahead) in the next section.

What is taxable under GST in Singapore?

You know you must register for GST in Singapore, but now you face a problem: What is taxable under Singapore GST regulations?

You’re not alone.

Many businesses assume “everything” is subject to GST. But the truth is, not all goods and services are taxed the same way.

Here’s how to break it down:

Taxable Supplies

These are products and services where GST applies, either at the standard 9% rate or a 0% zero-rated rate.

Standard-Rated Supplies (9%)

You charge 9% GST on most local sales:

• Retail goods: e.g. a TV sold in a Singapore store
• Imported low-value goods: e.g. a $330 tennis racquet sold online by an overseas seller to a Singapore customer (from 1 Jan 2023)
• Local services: e.g. spa treatments, cleaning services
• Imported services: e.g. marketing services bought from an overseas agency

Zero-Rated Supplies (0%)

GST still applies—but at 0% (so you can still claim input tax):

• Exported goods: e.g. laptop sold and shipped to a customer in the US
• International services: e.g. an air ticket from Singapore to Thailand

Non-Taxable Supplies

GST does not apply to these categories. You don’t charge GST and can’t claim input tax on related purchases.

 Exempt Supplies

• Residential property sales or rentals (unfurnished)
• Financial services: e.g. issuing a debt security
• Digital payment tokens: e.g. exchanging Bitcoin for SGD

 Out-of-Scope Supplies

These fall outside the GST system entirely:

• Goods delivered from overseas to another overseas location
• Private transactions (non-business sales)
• Local supply of investment precious metals

9 steps to make your business GST-compliant

Becoming GST-registered isn’t just about getting a number from IRAS. It unlocks a list of serious legal obligations that commence on the effective registration date.

Ignore these? You’re risking fines, penalties, or even deregistration.

Let’s break down your GST compliance responsibilities into manageable parts so you stay penalty-free and confident in your operations.

Charge & Account for GST

If you sell goods or services in Singapore, you must:

1. Charge 9% GST on standard-rated supplies
2. Account for this tax in your GST return
3. Understand special cases like:
   1. Reverse Charge (for B2B imported services)
   2. Overseas Vendor Registration (for B2C imported digital services)
   3. Customer Accounting (for certain goods over $10,000, where your customer accounts for GST, not you)

 This includes new rules from Jan 2023 covering imported low-value goods and B2C imported non-digital services.

File GST returns on time

You must file accurate GST returns within 1 month after the end of your accounting period, even if there are no transactions (submit a “NIL” return).

Miss a deadline?

• $200 late penalty imposed immediately
• Another $200 added each month your return remains outstanding (up to $10,000 per return)
• IRAS may issue an estimated assessment with late payment penalties

Pay GST promptly

Tax due must be paid by the same filing deadline, 1 month after the end of each period.

On GIRO? Dedications happen on the 15th of the following month.

Late payment? You’ll face:

• 5% immediate penalty
• 2% extra per month after 60 days (capped at 50%)

Keep proper records

All GST-registered businesses must:

• Keep business and accounting records for at least 5 years
• Maintain records even if you close or deregister

Examples of records include invoices, receipts, bank statements, contracts, purchase orders, and accounting ledgers.

Display prices with GST included

All advertised or quoted prices (in-store, online, in brochures) must show the GST-inclusive price clearly.

If you also show the GST-exclusive price, the inclusive one must be equally or more prominent.

Non-compliance can result in fines of up to $5,000.

Issue tax invoices

When you make standard-rated supplies, you must issue:

1. Full tax invoices for amounts above $1,000
2. Simplified tax invoices for smaller amounts

All invoices must include your GST registration number and mandatory details set by IRAS.

Notify IRAS of changes

You must inform IRAS within 30 days of any of the following:

• Change in business structure or ownership
• Change in GST mailing address or partner particulars
• New partnerships with the same set of partners

Account for GST on assets when you deregister

When your GST registration ends, you must account for GST on assets. The total market value of these assets exceeds $10,000, and input tax was previously claimed

• Inventory
• Fixed assets
• Non-residential properties
• Goods imported under special GST schemes

Extra conditions for voluntary registrants

If you registered voluntarily, you must:

1. Use GIRO for payments and refunds
2. Stay registered for at least 2 years
3. Start making taxable supplies within 2 years (if you haven’t already)
4. Comply with InvoiceNow e-invoicing rules if registering from Nov 2025 (new requirement)

IRAS may cancel your registration if you breach these conditions or show signs of Missing Trader Fraud.

What happens if your company does not follow GST rules?

IRAS takes tax fraud and evasion very seriously, and your company (and its directors) can face harsh consequences: fines, criminal charges, or even jail time.

Don’t let yourself be charged with tax and money laundering offences like this director.

In July 2025, a 38-year-old Malaysian woman was charged with:

• 87 counts of submitting false GST returns
• 4 counts of obstructing IRAS officers
• 6 counts of money laundering

She had set up multiple GST-registered companies with no real business activity, claiming over SGD 1.4 million in input tax refunds falsely. Between 2017 and 2024, she allegedly moved large sums of money out of the jurisdiction—laundering $213,000 of suspected criminal proceeds.

Under conviction, this person faces

1. A fine of up to SGD 10,000 per offence
2. 3x the amount of tax undercharged
3. Up to 7 years of imprisonment—or both

IRAS collaborates closely with the Commercial Affairs Department (CAD) to investigate and prosecute cases of tax fraud and money laundering.

If IRAS finds that any companies

• Submit false GST returns
• Create fictitious transactions
• Overstate input tax
• Obstructing or misleading tax officers

The directors are in serious trouble. If you’ve made errors or suspect non-compliance in your company, report it voluntarily. IRAS may consider it a mitigating factor when deciding on action.

Bonus: Boost your GST compliance knowledge

Think GST compliance is just about filing on time? There’s a lot more beneath the surface—and the more you know, the less you risk.

Here are two simple ways to level up:

Learn from IRAS’ Free e-learning courses

If you’re responsible for filing GST returns (F5, F7, F8) or handling GST matters, don’t guess your way through it. IRAS offers bite-sized e-learning videos on GST that cover:

1. GST registration rules
2. Filing and payment processes
3. Common mistakes to avoid
4. How to handle imported services and reverse charge

These courses are perfect for company directors, finance staff, and even business owners who want to stay compliant.

Get expert help 

Need help beyond what videos can offer? If your business:

• It is close to the $1M threshold
• Operates across borders
• Has complex supply chains or invoicing flows
• Wants to voluntarily register for GST

…it’s time to consult a tax advisor. An expert can:

• Review your GST reporting
• Ensure you claim input tax correctly
• Help you avoid IRAS audits or penalties

ACE will be the experts you need to comply with GST

If your company needs help filing taxes for the year 2025 or requires assistance with Singapore incorporation, economy, banking, etc., feel free to call /WhatsApp us at +65 90612851 or email us at aceglobalacct@gmail.com. Alternatively, you may leave us a reply using our contact form below.

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