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Last updated at
October 21, 2025
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Book NowGoods and Services Tax (GST) in Singapore is administered by the Inland Revenue Authority of Singapore (IRAS) and it applies to most supplies of goods and services in the country. It is a broad-based consumption tax collected from consumers and charged at each stage of production and distribution. The current GST rate is 9 percent from January 2024 and it applies when a business has taxable turnover of more than 1 million Singapore dollars in a 12-month period. GST helps the government raise stable revenue while keeping income taxes competitive. This blog explains how GST works in Singapore, who must register, and the procedures for filing returns.
The Goods and Services Tax of Singapore is a form of indirect tax similar to the Value Added Tax of other countries. It applies on the supply of a wide range of goods and services within the country and on imported goods. A business that exceeds the registration threshold needs to register with the Inland Revenue Authority of Singapore to comply with tax rules.
A registered business needs to collect GST on the sale of goods or services and pay the collected amount to the Inland Revenue Authority of Singapore. The business also can claim credits on GST paid for purchases used in its operations. This ensures that tax applies only on the value of final consumption and prevents double taxation on inputs of a business.
GST does not apply on every type of transaction. Certain supplies of goods and services such as the sale and lease of a residential property and most financial services are exempt on GST. This ensures that businesses and individuals in these sectors do not face additional GST costs on the activities they carry out.
From January 2024, the GST rate in Singapore is 9 percent. It applies on most goods and services supplied in the country and on imported goods. A business that meets the registration threshold needs to charge GST at this rate on taxable supplies to report accurately to the Inland Revenue Authority of Singapore. This ensures proper accounting and consistent compliance on all transactions.
A business also can claim input tax on eligible purchases used in operations. This reduces costs of business activities and ensures that tax applies only on the value of final consumption. Calculating input and output tax correctly helps a business avoid penalties and maintain complete records.
Zero-rated supplies of goods and services including exports and international services are taxed at 0 percent. Input tax on related purchases can be claimed. Exempt supplies including residential property, most financial services, and approved investment metals do not include GST, and input tax cannot be claimed.
A business must register for GST if its taxable turnover is more than 1 million Singapore dollars at the end of any calendar year or if it expects turnover of more than 1 million Singapore dollars in the next 12 months.
Registration requirements:
Compulsory registration: A business needs to register once turnover crosses 1 million Singapore dollars to comply with GST rules.
Voluntary registration: A business below the threshold may register voluntarily to claim input tax on purchases and lower the cost of business operations.
Obligations after registration: A registered business needs to charge GST on all taxable supplies and file returns according to the schedule of the IRAS to avoid penalties and keep proper records.
A registered business needs to file GST returns electronically with the IRAS every quarter. Filing includes details of all taxable supplies and purchases for the period. A business needs to calculate output tax collected from customers and input tax paid on purchases to determine the net GST payable or refundable.
Filing components:
Total sales: A business needs to report the total value of all taxable supplies made during the quarter on the GST return. This ensures IRAS has a record of revenue subject to GST.
Output tax collected from customers: A business needs to include the total GST collected from customers on sales of goods or services. This forms part of the amount payable to the Inland Revenue Authority of Singapore.
Input tax paid on purchases: A business needs to include the total GST paid on goods or services purchased for business use. This amount can be claimed to offset output tax.
GST in Singapore applies on different types of supplies of goods and services. A business needs to identify zero-rated supplies and exempt supplies to apply the tax in the correct way and needs to claim input tax on the purchases that are allowed. Accurate classification needs to ensure compliance with the rules of the Inland Revenue Authority of Singapore and maintain records of GST collected and input tax claimed.
Zero-rated supplies: These supplies are taxed at 0 percent. A business will charge no GST on sales of goods or services under this category. A business will claim input tax on purchases used to provide these supplies. This allows recovery of GST paid on inputs while the sale remains free of GST for the customer.
Exempt supplies: Exempt supplies are outside GST. A business will not charge GST on sales or services in this category. A business will also not claim input tax on purchases used to provide these supplies. This applies on residential properties, most financial services, and approved investment metals. Proper application ensures correct GST reporting and compliance with the Inland Revenue Authority of Singapore.
GST needs to apply on imported goods and services consumed in Singapore. A business needs to account for GST on purchases brought into the country and on digital services supplied to Singapore customers. Calculation of GST on these items needs to ensure compliance with the rules of the Inland Revenue Authority of Singapore and maintain proper reporting of tax obligations.
Since January 2023, a business supplying imported digital services or low-value goods to customers in Singapore needs to register for GST if annual turnover exceeds the threshold. Registration needs the business to charge GST on these supplies and include the details on quarterly GST returns to IRAS.
Import GST is payable on most physical goods brought into Singapore unless the items are exempt. A business importing goods needs to calculate GST based on the value of goods, shipping costs, and insurance. Accurate reporting needs to maintain correct records of taxable imports and ensure proper settlement of GST with IRAS.
Penalties for non-compliance with GST in Singapore apply on a business that does not register for GST, files a return late, or reports GST incorrectly. A business that fails to register will pay backdated GST on past supplies with extra charges from the Inland Revenue Authority of Singapore. Late filing of a GST return will result in a penalty on each return and further fines for repeated delays. Incorrect or under-declared GST will lead to penalties based on the difference in tax and the level of non-compliance.
A business that keeps proper registration, files a GST return on time, and reports GST accurately will avoid penalties. Keeping records of the GST collected and a claim of input tax up to date will help track the obligations of the business and ensure compliance on the Inland Revenue Authority of Singapore.
GST in Singapore is 9 percent and applies to most goods and services for any business with turnover above 1 million Singapore dollars. A business must register with the Inland Revenue Authority (IRAS) of Singapore and charge tax on taxable supplies. It manages zero-rated and exempt supplies and reports imported goods and services to stay compliant.
Filing quarterly returns on time with accurate details helps avoid penalties and keeps the operations of the business smooth. Maintaining records of GST collected and input tax claimed supports proper accounting and ensures compliance on the Inland Revenue Authority of Singapore.
What is the current rate of GST in Singapore?
The GST in Singapore is 9 percent from January 2024 and applies on most goods and services by a business that meets the registration threshold.
Who must register for GST in Singapore?
A business in Singapore with a taxable turnover above 1 million Singapore dollars in 12 months will register for GST and can charge GST and claim input tax.
Can a business claim input tax on overseas purchases?
A business can claim input tax on imported goods and services if they are used for taxable supplies in Singapore and proper documentation is kept.
How often must GST in Singapore returns be filed?
A business will file GST returns quarterly on the schedule of the Inland Revenue Authority of Singapore to remain compliant.
What happens if GST in Singapore is not filed on time?
Late or wrong filing of GST in Singapore will lead to penalties and fines and the Inland Revenue Authority of Singapore will issue backdated assessments.
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