If your business is growing, sooner or later you will ask the question every Singapore founder asks: do I need to register for GST? The answer depends mainly on your taxable turnover, and getting it wrong can be costly. This guide explains the rules for GST registration in Singapore in plain English, so you can tell whether you must register, whether you should register voluntarily, and what to do next.
What Is GST in Singapore?
Goods and Services Tax (GST) is a consumption tax charged on most goods and services sold in Singapore. The rate has been 9% since 1 January 2024. A GST-registered business adds GST to its taxable sales, collects it from customers, and pays it to the Inland Revenue Authority of Singapore (IRAS). It can also claim back the GST it pays on eligible business purchases, which is called input tax.
When Is GST Registration Compulsory?
You must register when your taxable turnover exceeds S$1 million. Taxable turnover means your standard-rated and zero-rated sales. Exempt supplies and out-of-scope supplies are not counted, and the test is based on turnover, not profit. IRAS checks this in two ways:
- Retrospective test: if your taxable turnover for a calendar year (1 January to 31 December) went above S$1 million, you must apply within the first 30 days of the next year. Registration generally takes effect from 1 March.
- Prospective test: if you have reasonable grounds to expect taxable turnover above S$1 million in the next 12 months, for example after signing a large contract, you must apply within 30 days of reaching that expectation.
Missing the deadline is an offence, and late registration can lead to penalties on top of the GST you should have charged. If you think you may have crossed the line, check with IRAS or an accountant straight away.
Should You Register for GST Voluntarily?
If your turnover is below S$1 million, registration is optional. Voluntary registration can make sense in some cases, but it comes with obligations.
Possible benefits
- You can claim back GST on business costs such as equipment, stock, software and rent, where eligible.
- If your customers are mostly GST-registered businesses, charging GST does not cost them extra because they can claim it back.
- You get your bookkeeping and invoicing systems in place before you cross the threshold.
Possible drawbacks
- You must generally stay registered for at least two years.
- You need a GIRO arrangement, and voluntary applicants must also complete a GST e-learning course.
- If you sell mainly to the public, customers cannot claim GST back, so you either raise prices by 9% or accept a lower margin.
- You must file regular returns and keep proper records.
A simple rule of thumb: businesses selling to other businesses, with large GST-bearing costs, benefit most. Small businesses selling to consumers often gain little.
How to Register for GST in Singapore
- Work out whether your registration is compulsory or voluntary.
- Prepare your turnover records and any supporting documents, such as signed contracts for a prospective forecast.
- Apply through the IRAS myTax Portal using your business Corppass access.
- If applying voluntarily, set up GIRO and complete the required e-learning.
- Wait for IRAS to confirm your effective date. Start charging GST only from that date, not from the day you applied.
Still setting up your company? Read our guides on how to register a company with ACRA and the step-by-step process for registering a business in Singapore.
What Changes After You Register?
- Issue proper tax invoices and show your GST registration number.
- Charge GST at the prevailing rate on taxable sales.
- File GST returns, generally every quarter, and pay any GST due to IRAS on time.
- Keep your records for the period IRAS requires.
- Follow IRAS e-invoicing requirements (InvoiceNow) that apply to your business.
Online sellers should also plan for GST early. See our guide on starting an e-commerce business in Singapore.
Frequently Asked Questions
Is the S$1 million GST threshold based on revenue or profit?
It is based on taxable turnover, which is your taxable sales, not your profit.
Do freelancers and sole proprietors need to register for GST?
The same rules apply to sole proprietors, partnerships and companies. If your taxable turnover passes S$1 million, you must register. Below that, registration is optional.
When should I start charging GST after applying?
Only from the effective date shown in your IRAS registration notice.
This article is general information, not tax advice. Rules and deadlines can change, so confirm the latest requirements on the IRAS website or with a qualified accountant before you act.