When must a business register for GST in Singapore and what is the S$1 million threshold?

In Singapore, businesses must register for Goods and Services Tax (GST) when their taxable turnover meets certain thresholds. There are two types of registration:

Compulsory Registration:

You must register for GST if:

• Retrospective basis: Your taxable turnover at the end of any calendar year (1 Jan to 31 Dec) exceeds S$1 million. You must register within 30 days of the liability arising.
• Prospective basis: You have reasonable grounds to believe that your taxable turnover in the next 12 months will exceed S$1 million.

Voluntary Registration:

Businesses below the S$1 million threshold may voluntarily register for GST. This can be advantageous if you primarily sell to GST-registered businesses (B2B) or make significant zero-rated supplies (exports). However, once voluntarily registered, you must remain registered for at least 2 years and comply with all GST obligations.

Key obligations after registration:

• Charge 9% GST on all taxable supplies of goods and services.
• File GST returns quarterly (Form 5) by the last day of the month following the end of each quarter.
• Maintain proper tax invoices and records for at least 5 years.
• Account for GST on imported services under the reverse charge mechanism.

Exemptions from registration:

If your taxable supplies are predominantly or wholly zero-rated (e.g., exports), you may apply for exemption from registration even if turnover exceeds S$1 million.

Penalties for late registration: Failure to register on time can result in a fine of up to S$10,000 and a penalty equal to 10% of GST due from the date you should have been registered.