Singapore GST – Liability to register for GST


For 2 consecutive days, we have received enquiries from potential clients pertaining to the requirements for registering Singapore GST.   We do believe that many business owners are aware of the existence of the Singapore GST system, which has been effective since 1 April 1994.  It is however our observation that there remains a group of business owners who do not understand the ramifications for non-compliance with the GST registration requirements.

LIABILITY TO REGISTER FOR GST 

A person is liable to register for GST either on a retrospective basis or a prospective basis.

  • Retrospective basis refers to the person’s taxable turnover at the end of the calendar quarter (i.e. 3 months ending March, June, September or December) AND the past 3 quarters is more than $1 million.
  • Prospective basis refers to the person’s taxable turnover in the next 12 months is expected to exceed $1 million. 

When it is determined that you are liable to register for GST, you have to submit your application for GST registration by the due date or else penalty for late notification of your liability for GST registration will be imposed.

LATE NOTIFICATION OF LIABILITY FOR GST REGISTRATION

You have to submit your application for GST registration by the due date to avoid being penalised for late notification of your liability for GST registration., which may include the following:

  • Your date of registration will be backdated to the date that you were liable to be registered.
  • You will have to account for and pay GST on your past sales starting from the effective date of registration, even if you did not collect any GST from your customers.
  • You may face a fine of up to $10,000 and a penalty equal to 10% of the GST due. Prosecution action may apply.


VOLUNTARY DISCLOSURE PROGRAM

Taxpayers are qualified for voluntarily disclosure program can submit an application for GST registration and if accepted, IRAS will generally waive the late notification fine and penalties.  If taxpayers have difficulties in paying the GST due on the backdated period, IRAS may also allow them to pay the GST due in instalements.

If you have any questions, please contact us at support@whm-consulting.com

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