Tag Archives: GST Registration

Singapore GST – Revised Method To Determine the Registration Threshold


The Inland Revenue Authority of Singapore announced on 14 February 2018 the revised method to determine the GST registration threshold for the purpose of compulsory GST registration.

Under the existing rule, a person must register GST under the retrospective basis if his taxable turnover at the end the calendar quarter (i.e. 3 months ending Mar, Jun, Sep or Dec) and the past three quarters is more than $1 million.

For periods on or after 1 Jan 2019, taxable turnover will be computed on a calendar year basis for the purpose of determining registration liability.  The person will have to monitor at the end of every calendar year (i.e. 31 Dec) and register for GST if his annual taxable turnover exceeds $1 million.

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Singapore GST – Electronic Application for GST Registration From 1 Oct 2018 onwards


The Inland Revenue Authority of Singapore announced on 14 February 2018 that GST registration will have to be made electronically at myTaxPortal with effect from 1 October 2018.  Paper applications will only be accepted for exceptional cases e.g. businesses not granted access to myTaxPortal.

The benefit of submitting the application for GST registration is the shortened processing time

  • 2 working days for compulsory GST registration
  • 10 working days for voluntary GST registration upon receipt of your completed GIRO form*.

Where it is inevitable that paper application for GST registration is to be submitted, the processing time will be as follows:

  • 10 working days for compulsory GST registration
  • 1 month for voluntary GST registration upon receipt of your completed GIRO form.

* The GIRO application form submitted will be sent to the applicant’s bank for approval. The approval process may take between 2 to 4 weeks.  The IRAS will inform the applicant separately via letter if the bank rejects his application. Most banks will usually notify the applicants directly for GIRO applications accepted by them. IRAS will not send any letter for approved applications.

 

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Singapore GST – Liability to register for GST for a Singapore branch (A Case Study)


CASE STUDY
Company XYZ, a non-Singapore incorporated company, registered with the ACRA a few years ago a Singapore branch.  The principal activities of the Singapore branch were to provide management services to overseas affiliated entities in the SEA region.  The turnover of the Singapore branch has exceeded S$1 million annually. XYZ has decided to corporatise the Singapore branch in 2017 and proceeds with de-registration of the Singapore branch.

QUESTION
What are the GST issues arising from this case study for the Singapore branch?

POTENTIAL ISSUES
1.     Did the Singapore branch have the liability to register for Singapore GST?

2.    If the answer to Question 1 is “Yes”, is there any way for the Singapore branch to have asked for an exemption from GST registration in the first place?

3.   If the answer to Question 1 is “Yes”, now that the Singapore branch is late in GST registration, will IRAS object to its de-registration on the basis that there is non-compliance issue for the branch from a GST viewpoint?

4.   What could the branch do in such cases?  Is voluntary disclosure program available in such case?

5.   If it is determined that VDP is not available, what are the penalties to be imposed on the Singapore branch?  Is there any room for negotiation for lesser penalties from IRAS.

As you can see, ignorance or failure to register for GST if the person is liable to do so is a serious offence in Singapore.  IRAS is getting very tougher and penalizing taxpayer for non-compliance with this requirement.

If you have any questions regarding the above, or if you want to have a thorough discussion about your liability to register for GST, please contact support@whm-consulting.com for an appointment.

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

Australian GST – Imposing “Netflix Tax” or “Amazon Tax” in Australia from 1 July 2017


The Australian Government has recently announced that amendment to the current GST legislation will be made such that from 1 July 2017, non-Australian suppliers would be required to remit GST for sales of goods to Australian customers if the annual value of their taxable supplies is at least A$75,000.

This means that all goods sold to Australian customers by overseas vendors could be subject to Australian GST, subject to satisfying the registration threshold and other conditions that might be imposed on the overseas vendors.

In our opinion, this will be a significant change for online retailers of goods and could present a number of practical issues including pricing and determining when a sale is made to a customer located in Australia.

Will Singapore adopt this model?  Only time will tell.

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

Be Well!
Jack:)