Goods and Services Tax is strikingly similar as Value Added Tax used by other countries. After GST was implemented on April 1, 1994 in Singapore, it was later on used as a guide on the VAT legislation in UK and New Zealand.

Goods and Services Tax is administered, reviewed, implemented and collected by the Inland Revenue Authority of Singapore . GST is considered as an indirect tax on the supply of goods and services made in Singapore and on the importation of goods into Singapore with its current rate at 7%.

Except for financial services and the sale or lease of residential properties, GST is applied on all goods and services.Just like business registration and incorporation, there is also a need to register your business for GST and this is the reason why there are different Singapore GST services available in the country.

Here are several main information you should know regarding Goods and Services Tax:

This requirement may be waived if most of your goods or services are exported or supplied internationally .

Agencies such as Sole proprietorships, partnerships, limited liability partnerships, companies, clubs, associations, management corporations or organizations, statutory boards and government bodies are encourage to register for GST.

Here are some of the basic reasons why a business should register to GST:

To get back the GST incurred on their business purchases, several businesses register for GST.

It is advisable for companies to claim the difference if ever GST paid exceeds GST collected since IRS will allow companies to take the difference called GST refund

If GST rate increases, it is advisable for one to voluntarily register to be able collect GST so that in effect one can claim back GST incurred on business purchases.

Available GST schemes for businesses are below:

For one to get a grant to lower the costs involved in becoming a GST-registered trader it is advisable for the company to use the Goods and Services Tax Assistance Scheme.The ability to collect GST and claim back for GST paid to suppliers is possible through GST traders

In a Major Exporter Scheme , major exporters can improve their income by deferring GST payments on goods imported mainly for re-export out of Singapore.

In a Licensed Warehouse Scheme, the ability to transform warehouse into a licensed warehouse for storing dutiable goods is made possible. Goods and Services Tax are suspended until the goods are released for sale into Singapore in licensed warehouses.

Businesses can modify their warehouses into a zero-GST warehouses to minimize red tape and bypass the GST process in scheme called a Zero GST Warehouse Scheme .

 

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