Do You Need to Register for GST in Singapore?

The S$1 million threshold

A business must register for GST when its taxable turnover exceeds S$1 million. IRAS applies two tests:

• Retrospective: taxable turnover for the past 12 months exceeded S$1 million.
• Prospective: taxable turnover for the next 12 months is expected to exceed S$1 million, for example because of a signed contract.

Once either test is met, the application must be made within 30 days. The standard GST rate has been 9% since 1 January 2024.

What counts as taxable turnover

Taxable turnover includes standard-rated and zero-rated supplies, such as exports and international services. Exempt supplies, like certain financial services and residential property, are excluded. Getting this classification right is the first step in testing the threshold.

Voluntary registration

A business below the threshold can choose to register. This lets it claim input tax on its purchases, which can help businesses that export or sell mainly to other GST-registered companies.

The trade-offs: you must charge GST on your supplies, file regular returns, keep proper records and stay registered for at least two years. For businesses selling to consumers, adding 9% to prices may affect competitiveness.

Overseas businesses

Overseas suppliers that sell digital services or low-value goods to Singapore consumers may have to register under the Overseas Vendor Registration regime, even without a Singapore entity. This depends on their global turnover and the value of their sales to Singapore customers.

What to do next

1. Run the retrospective and prospective tests every quarter.
2. Classify your supplies correctly.
3. If you are near the threshold, decide on timing before a large contract tips you over.

We can test your position, handle the registration and file your GST returns each quarter.

This article is general information about Singapore rules at the date of publication and is not legal or tax advice for your situation.