In Singapore, GST is charged at 9% on most goods and services rendered in the course of a business. The tax is collected and remitted to the government (Inland Revenue Authority of Singapore, or IRAS) by companies that are GST-registered. Since the tax is borne by the end consumer, it does not normally pass on to the company’s bottom line, but companies that collect GST must invoice customers for the amount charged plus GST, and then remit this tax to IRAS on a quarterly basis via GST filing. Exemptions include most financial services, the sale and lease of residential properties, supply of digital payment tokens including the exchange of fiat currency for these tokens, as well as importation and local supply of prescribed investment precious metals. Check this out:https://www.cfoacc.com.sg/accounting/gst-registration-singapore

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In addition to collecting GST from customers, companies must file GST returns with IRAS and keep records of their purchases, sales, and remittances. For businesses that sell internationally, they must also comply with tax rules in other countries. To ensure compliance, companies should cross-check the registration thresholds and product taxability rates in other jurisdictions before selling there, and validate customer tax IDs to avoid being responsible for the reverse charge mechanism.

If a business’s annual global turnover exceeds S$1 million, it must register for GST. For those whose revenue is below this threshold, they may opt for voluntary registration after considering the impact. In either case, late registration or non-payment of GST can result in penalties. For example, a company that has not filed their GST return in 60 days will receive a demand notice from IRAS, and future late lodgement penalties of 2% each month may be applied.