A GST-registered business' responsibilities include charging and accounting for GST, filing GST returns on time, keeping proper records and displaying prices inclusive of GST.
Your company will need to fulfil these responsibilities from the effective date of registration that is stated in your approval letter.
1. Charge & account for GST on standard-rated supplies
For supplies of goods and services made in Singapore (standard-rated supplies), you need to charge and account for 8% GST.
From 1 Jan 2020, GST is charged on Business-to-Business (B2B) supplies of imported services under the Reverse Charge regime and Business-to-Consumer (B2C) supplies on imported digital services under the Overseas Vendor Registration regime.
With effect from 1 Jan 2023, GST will be extended to imported low-value goods and B2C imported non-digital services.
However, if you make relevant supplies [i.e. local sales of prescribed goods (mobile phones, memory cards and off-the-shelf software) exceeding $10,000 in value] that are subject to customer accounting, you should not charge GST to your GST-registered customer. Instead, your GST-registered customer will need to account for the GST as his output tax.
2. File GST returns & pay tax due
You must file accurate GST returns and pay the tax due in a timely manner.
File GST returns
All GST returns must be submitted via mytax.iras.gov.sg within one month from the end of each accounting period. You can check your filing due date on myTax Portal.
If there is no transaction, a “NIL” GST return must still be filed.
Late filing or non-filing
Failure to file GST return is an offence punishable with a fine up to $5,000 and in default of payment, an imprisonment term up to 6 months.
For non/late submission of GST F5/ F8 returns, IRAS may:
- Impose a late submission penalty of $200 immediately after the GST return filing due date. A penalty of $200 will continue to be imposed for every completed month when the GST F5/F8 return remains outstanding, up to a maximum of $10,000 for each outstanding F5/F8 return. You may refer to these examples on how the late submission penalty is imposed.
- Issue an estimated assessment of the overdue GST, along with late payment penalties. We may consider revising the estimated assessment and late payment penalties only upon receiving the overdue GST return.
Paying GST due on time
Tax due must be paid within 1 month from the end of each accounting period (by the day when the GST return is due). If you are on GIRO plan for GST payment, GIRO deductions will take place on the 15th day of the month after the payment due date.
Late payment or not paying
For non/late payment, a 5% penalty will be levied on the amount of tax unpaid by the due date. An additional penalty of 2% per month on tax remaining unpaid after 60 days from the due date of the prescribed accounting period (subject to a maximum of 50% of the outstanding tax) may also be imposed. You may refer to these examples on how the late payment penalties are imposed.
3. Keep proper business & accounting records
You must keep all business and accounting records for at least 5 years.
Learn about the types of records you need to keep.
4. Display prices with GST
Any price displays, advertisements, publications or quotations in respect of goods or services made to the public must be inclusive of GST.
If both GST-inclusive and GST-exclusive prices are displayed, the GST-inclusive price must be displayed at least as prominently as the GST-exclusive price.
Failure to comply with each of these requirements is an offence that can result in a fine of up to $5,000.
Please refer to our webpage on Displaying prices for the acceptable price display format. The only exception is for businesses in the hotel and food & beverage industries supplying goods and services that are subject to service charge.
5. Issue tax invoices with GST registration number
You are required to issue tax invoices/customer accounting tax invoices for your standard-rated supplies.
If the total amount payable for your supply (including GST) does not exceed $1,000, you may issue a simplified tax invoice.
Your GST Registration Number should be reflected on all your tax invoices, simplified tax invoices and receipts.
Please refer to our webpage on Invoicing customers for the information required in a tax invoice and simplified tax invoice.
6. Notify IRAS of changes
You need to inform the Comptroller within 30 days after any change to your business circumstances. These changes include:
- Change in GST mailing address;
- Change in business constitution or ownership;
- Change in partner(s) or particulars of partner(s); and
- Set up of new partnership businesses with the same composition of partners.
Learn more about the procedures to notify IRAS of changes to your business.
7. Account for GST at point of de-registration
When your GST registration is cancelled, you need to account for GST on business assets held on the last day of registration if:
- GST was previously claimed on the business assets; and
- Total market value of these business assets is more than $10,000
These assets include inventories, fixed assets, non-residential properties and goods imported under the various GST schemes.
Please refer to our webpage on cancelling GST registration for more details.
8. Obligations for voluntary registrants
If you are under voluntary registration, you have to:
- Use GIRO for payment and refund of GST;
- Remain GST-registered for at least 2 years;
- Comply fully with the responsibilities of a GST-registered business;
- Make taxable supplies within 2 years if you have not started making taxable supplies at the point of applying for GST registration; and
- Any other conditions as may be imposed by IRAS.
The conditions vary for businesses who have voluntarily registered under the overseas vendor registration pay-only regime. Please refer to our webpage on overseas vendor registration for more details.
The Comptroller may cancel the voluntary GST registration if any of the conditions are not met or if there is evidence to conclude that you are committing or participating in a Missing Trader Fraud arrangement.New
9. Obligations for compulsory registrants
New If you are under compulsory registration, you have to comply with any conditions as may be imposed by IRAS for the protection of revenue.
For instance, businesses assessed to pose a risk to revenue may have conditions imposed on their GST registration by IRAS.
The Comptroller may cancel the compulsory GST registration if there is evidence to conclude that you are committing or participating in a Missing Trader Fraud arrangement.
I have just submitted my application form for GST registration. Do I need to start charging GST?
You should only start charging GST from the effective date of your GST registration.
The effective date of registration is stated in the approval letter from IRAS, which also contains your GST registration number.
Is there another document I can issue for my sales besides a tax invoice?
All GST-registered businesses must issue tax invoices for sales made to another GST-registered business. This is to enable your customer to claim the GST incurred based on your tax invoice. If the value of your supply does not exceed $1,000, you can issue a simplified tax invoice with fewer details. However, if you are selling to end consumers who are not GST-registered, you can issue a receipt instead of a tax invoice. A serially printed receipt must be issued for each sale transaction.
What if I lose some of my records?
If you are unable to provide sufficient documents to support your input tax claim, your input tax claim will be disallowed.
If you lose the supporting documents to prove the export of your goods or provision of international services, you must standard-rate the supply and account for GST based on the prevailing GST rate.
In addition, penalties may be imposed for failure to maintain sufficient documents to support your GST declaration.