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GST Standard rate
GST standard rate in Singapore in 2024 is 9%. It applies to supplies of goods and import. Export in Singapore is zero-rated.The Minister for Finance announced in Budget 2018 that GST will apply to imported digital services in the context of business-to-consumer (“B2C”) transactions by way of an overseas vendor registration regime with effect from 1st January 2020.
VAT Standard rate
The standard VAT rate in Singapore in 2024 is 8%.VAT Reduced rate
There is no reduced rate established.
VAT Standard rate
9%
VAT Reduced rate
-
Thresholds
EUR 690,000
GST registration threshold
GST threshold in Singapore is SGD 1 million (approx. EUR 690,000). Businesses have to register for VAT purposes in Singapore if their annual revenue exceeded this amount or expected to be so for the next 12 months. Voluntary registration is allowed.Deductible GST
Businesses can refund the input tax by deducting it from the output tax. The input tax includes GST charged on goods supplied to Singapore and GST paid on import. Input tax is not recoverable for businesses that are not registered for GST in Singapore.Registration procedure
Within 30 days after GST threshold in Singapore was exceeded business have to apply for GST registration. It can be done online with Inland Revenue Authority of Singapore (IRAS) via myTax Portal. Normally, it takes 10 days to process a request for registration. The following documents are needed:- director ID;
- certificate of Incorporation, officially translated into English and notarized;
- letter to appoint a local agent.
Keeping records
The period of keeping records in Singapore must be at least five years.GST returns filing and payment date
The due date for GST return is within one month from the end of each quarter. GST returns in Singapore must be submitted electronicaly.Penalties in Singapore
Penalty for late registration for GST in Singapore – fine up to SGD 10,000 (approx. EUR 7,000) and a penalty equal to 10% of the GST due. Penalty for late filing of GST returns – SGD 200 (approx. EUR 140) is imposed immediately once the GST return is not filed by the due date. A further penalty of SGD 200 is imposed for every completed month that the GST return is not filed. Fine may increase up to SGD 10,000. Penalty for late payment – 5% of amount due, plus additional interest of 2% per month on the outstanding debt after 60 days from the due date of payment.Threshold
If the company belongs outside Singapore, it is required to register for GST in Singapore if it:- Has an annual global turnover exceeding $1 million;
- Makes B2C supplies of digital services to customers in Singapore exceeding $100,000.
Pieces of evidence
Overseas Vendors are required to obtain and maintain at least two pieces of non-conflicting evidence of your customers’ belonging status, based on the following three proxy categories:- Payment Proxy (e.g. credit card information based on BIN number bank account details);
- Residence Proxy (e.g. billing address, home address);
- Access Proxy (e.g. mobile country code of SIM card, IP address, location of fixed landline through which the service is supplied).
E-services list
Digital services are defined as services that are delivered over the Internet or an electronic network and the nature of which renders their supply essentially automated and involves minimal human intervention, and is impossible to ensure in the absence of information technology. These services include the supplies of the following:- Downloadable digital content (e.g. downloading of mobile applications, e-books, and movies);
- Subscription-based media (e.g. news, magazines, streaming of TV shows and music, and online gaming);
- Software programs (e.g. downloading of software, drivers, website filters, and firewalls);
- Electronic data management (e.g. website hosting, online data warehousing, file-sharing, and cloud storage services);
- Support services, performed via electronic means, to arrange or facilitate a transaction, which may not be digital in nature (e.g. commission, listing fees, and service charges).
Registration procedure
To ease the extra-territorial compliance burden, overseas suppliers and overseas electronic marketplace operators will be registered under a simplified pay-only regime. While input tax claims incurred on taxable purchases made in Singapore are not allowed, the regime features simplified GST reporting and documentation requirements. Companies can register for GST by completing the GST registration application form for Overseas Vendors and providing the requested information. It is not required to appoint a local agent to handle tax matters in Singapore, nor is required to provide a security deposit during the course of registration.VAT returns filing date
In the simplified GST returns, foreign businesses are required to report only the value of supplies made and the GST collected in the relevant accounting period on a quarterly basis. Foreign businesses must submit accurate GST returns via e-Filing and make payment electronically for the tax due in a timely manner, within one month from the end of each accounting period.VAT payment date
The same date as for filling (see above).Penalties
Penalties may apply in the following scenarios:- Failure or late notification for GST registration;
- Late or non-filing of GST returns;
- Submission of incorrect GST returns;
- Late or non-payment of GST due;
- Failure to maintain proper record keeping;
- Failure to comply with the responsibilities of a GST-registered person in Singapore.
Keeping records
GST-registered businesses are expected to maintain proper business and accounting records for at least 5 years, in order to support GST declarations.
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