Charging and claiming GST
Only GST-registered businesses are allowed to charge and claim GST. If your business is GST-registered, you can claim money you’ve lost to tax, or pay back what you must by submitting your GST returns to IRAS within a month from the end of each accounting period. This usually occurs every quarter of the year. Your GST returns should include both your input and output tax.
Charging GST
A GST of 9% must be charged on all taxable supplies, except for those subject to customer accounting. Customer accounting applies when the value of supply is greater than SGD$10,000 in a single invoice, and the goods sold are one of the following:
- Mobile phones
- Memory card
- Off-the-shelf software (eg. CDs)
Customer accounting means that the seller, a GST-registered business, only charges for the goods on the invoice, and the purchaser, who must be a GST-registered business, accounts for both input and output tax on their GST return. Think of it as having someone to do your maths homework for you!
0% GST (Zero-rate GST)
You are required to charge 0% GST when
- Providing international services
- Exporting of goods
Please note that this applies on a case by case basis, so do refer to the links attached for more information.
Exception (for non-GST registered businesses)
A non-GST registered business is mandated to charge and account for GST when it sells or rents out assets (eg. property, equipment) owned by a business in order to recover a debt.
Claiming GST
GST-registered business can claim the GST incurred on business purchases, including exports. This is collected as input tax in your GST return, and can only be collected if you fulfil the criteria for claiming input tax.
Exception (for non-GST registered businesses)
If your business isn’t GST-registered, there are a few situations where you might still be able to claim GST:
- Qualifying Funds: If your business involves funds managed by approved fund managers in Singapore, you can claim GST on certain expenses through a special remission scheme. The Monetary Authority of Singapore (MAS) provides more details about how this works.
- S-REITs and S-RBTs: If you’re involved in Real Estate Investment Trusts (S-REITs) or Registered Business Trusts (S-RBTs) listed on the Singapore Exchange, you can claim GST on your business expenses, including those incurred by your Special Purpose Vehicles (SPVs). This is allowed even if you’re not GST-registered
Confusing, isn’t it? ScAilable will help you maximise these exemptions and incentives and make the best out of it for your business.