With experienced and/or trained personnel, a computerised accounting system and adequate internal controls, you can avoid making costly GST errors.
You are encouraged to conduct a regular self-review of the tips below (e.g. half-yearly) and take appropriate steps to ensure good GST compliance.
Your GST preparer
- has at least 1 year experience preparing GST returns.
- has adequate GST knowledge e.g. attended Introduction to GST Seminar conducted by IRAS.
- visits IRAS website regularly to update his or her GST knowledge.
- actively seeks clarification from IRAS or GST experts (e.g. tax consultants) on the correct GST treatment for new or uncertain transactions.
Your accounting system
- is computerised (i.e. use of customised or off-the-shelf accounting software packages. Please note that Microsoft Word/Excel are considered as manual accounting.)
- is able to generate a GST report to help you complete your GST returns.
- is able to detect duplicate records (e.g. duplicate invoice numbers entered).
- is able to generate softcopy listings (preferably in Microsoft Excel spreadsheet) which may be required by IRAS for its audit purposes. The softcopy listings should contain the following information:
Standard-rated supplies / Zero-rated supplies / Exempt supplies
| Invoice date |
Invoice number |
Name of customer |
Description |
Invoice amount excluding GST ($) |
GST ($) (if applicable) |
Destination of goods(if applicable) |
| |
|
|
|
|
|
|
Taxable purchases
| Invoice date |
Invoice number |
Name of Supplier |
Supplier’s GST registration number |
Description |
Invoice amount excluding GST ($) |
GST ($) |
| |
|
|
|
|
|
|
You have internal controls to ensure that
- your sales transactions are correctly classified as standard-rated (7%), zero-rated (0%), or exempt (no GST) before they are recorded in the accounting system or before invoices are issued.
- your purchase transactions are correctly classified as claimable or not claimable before they are recorded in the accounting system.
- your GST return declarations are reconciled to your accounting records and proper documentation is kept to show reconciliation (e.g. any manual adjustments are properly documented).
- a second level of review or approval is required before the GST return is submitted.
- periodic reviews are conducted to assess the correctness of GST return declarations.
- proper records and accounts are kept for all your transactions.
- proper supporting documents are kept for your zero-rated supplies.
- your internal control processes are properly documented and made available to all personnel involved in the accounting and GST reporting process.