Goods and Service Tax (GST), also known as Value-Added Tax (VAT) in a few countries, is a new type of tax system, governed by the IRAS (Inland Revenue Authority of Singapore). GST was initially introduced with an aim to reduce the burden of paying corporate and personal income taxes.
GST reporting tend to be the key areas that small business owners highlight as a major distraction in terms of both running and growing their business. Many of our clients had battled on for years preparing their own GST computation, before coming to us.
GST is poised to be the next driver for government revenue with another rate increase expected in the next few years. Businesses without dedicated internal resources especially may find it a challenge to keep abreast of changes in GST rules and regulations and applying them correctly on transactions to ensure overall GST compliance.
Compulsory Registration
It becomes compulsory for the businesses to register for GST when-
- The turnover of the business has been more than 1 million SGD for the last 12 months
- Expected turnover of the business will be more than 1 million SGD for the next 12 month
Voluntary Registration
A company can register voluntarily for GST when-
- The annual turnover of the business has not been more than 1 million SGD
- The supply of goods is done out of Singapore
- Exempt supplies of financial services is made which is also deemed as international services
Our GST Services
At Terra Advisory, we offer professional GST assistance in the following areas:
For your applications to IRAS
- Application for GST registration / de-registration
- Application for various GST relief schemes (e.g. Major Exporter Scheme (MES), Zero GST Warehouse Scheme)
- Conducting MES audit or review for renewal of MES status
- Managing and responding to IRAS queries
- Preparation of submission / ruling to the IRAS for tax concessions
- Making voluntary disclosure of errors to the IRAS to mitigate penalty exposures
- Managing IRAS audits or queries
Compliance Support
- Review and e-filing of GST returns
- Conducting GST Compliance Review (GST Healthcheck)
- Conducting Assisted Self-help Kit (ASK) review
- Conducting GST due diligence for merger and acquisition transactions
- Conducting in-house GST training customised to specific business transactions
The ASK review must either be performed or certified by an individual accredited with Singapore Institute of Accredited Tax Professionals (“SIATP”) as Accredited Tax Advisor (GST) [ ATA (GST) ] or Accredited Tax Practitioner (GST) [ ATP (GST) ]. The ATA or ATP can be an external party.
We provide ASK review services to help companies and business comply with the requirements set out in the GST ASK Annual Review Guide issued by the Inland Revenue Authority of Singapore.
GST Advisory
- Advice on GST implications involving business start-up, restructuring, new business arrangements and cross border transactions
- Assisting with dispute resolutions
- Review and advice on internal controls for GST reporting
- Review and advice on accounting system logic for GST coding
GST Penalties
If the GST returns is not submitted by due date (i.e. 1 month after the end of the prescribed accounting period), a penalty of $200 for each month that you continue not to submit the return will be imposed, up to a sum of $10,000.
If payment is not made by due date, a PENALTY of 5% of the unpaid tax will be levied. If Payment is still not made after 60 days, an ADDITIONAL PENALTY of 2% of the tax unpaid will be added from the first day after the due date. It will be added for each completed month, subject to the maximum of 50% of the tax unpaid.
GST computation and submission can be easily integrated into the quarterly bookkeeping cycle meaning you have more time to run and grow your business. Our tax consultants will help you achieve this.
We ensure that you will have peace of mind to know that you will not miss your deadlines on submission of your GST reporting.