For businesses engaging in international trade, being GST registered is essential for ensuring proper compliance with Singapore’s tax laws. Not only does this help businesses avoid penalties and fines, but it also opens up more opportunities by facilitating global business transactions. It’s important to work with a professional service provider to ensure that your company’s GST registration is done correctly and in accordance with Singapore’s tax laws.
In general, a business’s eligibility for GST registration is determined by its taxable turnover. This is the total value of taxable supplies made by the business, which does not include exempt supplies like sale and lease of residential properties and financial services. If a business’s taxable turnover exceeds S$1 million in a 12 month period, it is required to register for GST. Alternatively, a business can also apply for GST registration on a voluntary basis.
Once a business has successfully registered for GST, it will receive its GST number and start charging GST on all of its taxable supplies. Businesses must also keep all of their GST records and invoices, including a full breakdown of their input tax credits. Failure to do so will result in a five percent penalty being imposed on the unpaid amount.
In addition, it is important to remember that GST payments must be submitted by the end of each accounting period, which is usually around 30 days after the end of the business’s fiscal year. If a business does not file its GST returns on time, it may face a fine of up to two percent of the tax that should have been collected and paid.
Companies that choose to register for GST must submit a completed online application through IRAS’ myTax Portal. This can be accessed using either a CorpPass or SingPass. For businesses that do not have access to the internet, they can submit a paper application via IRAS’ mail-in form. Upon submission, the business will receive notification of its successful GST registration from IRAS.
Aside from the aforementioned benefits, there are some drawbacks to gst registration singapore. Most notably, it can be quite time-consuming to manage the process and maintain records in compliance with the law. For larger companies with multiple divisions, it can be difficult to reconcile all of the accounts on a regular basis.
Moreover, registering for GST is a public affair. When customers find out that your company is GST-registered, they will make certain assumptions about the size and revenue of your business. These mental assumptions will influence their purchasing decisions and can potentially affect your sales. In short, if you wish to build customer confidence and encourage repeat purchases, you should register your company for GST. The good news is that the entire process can be managed by professionals. To learn more about gst registration singapore, contact the team at Timcole today! Our accountants will be happy to assist. We can handle the entire GST registration process for you, as well as manage your GST filing going forward.