Step-by-Step Guide To GST Filing In Singapore

GST filing is a critical process for every business in Singapore. It not only ensures compliance with the set regional tax laws but also enhances smooth operations. GST is a tax on consumption that is levied on nearly all goods and services, including imports. 

Any business that has an annual value of taxable turnover of more than SGD 1 million is required to pay GST. As such, it is crucial to understand and discharge GST responsibilities.  

The guide provides a step-by-step procedure that businesses in Singapore can easily follow when filing GST returns. It helps the business overcome compliance challenges by covering every essential detail, from early planning to filing and payment. Whether you are a new registrar or want to streamline your filing procedure, this in-depth book will provide insightful information and advice to ensure the applicable GST returns are timely and correct, preventing fines and improving financial management.

What is GST in Singapore?

The GST is a broad-based consumption tax in Singapore that covers all products and services, save for a few. It applies to nearly all products and services, including imported products.  

The Goods and Services Tax came into being in 1994 and is a value-added tax with a current rate of 9%, which helps the country shift from direct to indirect taxation. This tax based on consumption encourages investment and savings with a reduced income tax rate. Filing GST is a multi-phase process at every point in the supply and demand chain.  

Some exemptions include digital payment tokens, financial services, residential real estate, and precious metal investment assets.

Who needs to file for GST? 

Any business that makes taxable supplies with an annual value of more than SGD 1 million is eligible for GST filing. These companies are required to charge, record, and file GST returns on all applicable sales. 

However, businesses under this level may register voluntarily, allowing them to recover input GST and gain access to other benefits associated with GST registration. They must maintain their voluntary registration for a minimum of two years. 

Certain business types are exempt from the requirement to register, which highlights the significance of tracking taxable turnover for GST quarterly filing to find out the need for registration. This wide range guarantees that different companies efficiently contribute to Singapore's taxation system.

The big question remains: how to do GST filing?

How do you prepare your GST filing online? 

To get ready to file your GST in Singapore, collect these necessary documents:

• Corporate charters (such as the ACRA company profile)

• Contracts about company transfers, if any

• Plans for upcoming sales and purchases

• Necessary permissions or licenses

• Information on purchases and sales during the last two months

Make sure every document is prepared for submission through the MyTax site and is in soft copy. 

The GST filing deadline to submit quarterly returns is the end of the following month.

• March, 

• June, 

• September, 

• and December.

Within one month of the conclusion of each period, submit your returns and payment. For instance, submit by April 30 if the GST filing deadline is March 31. It's essential to file on time to avoid fines.

So, is GST filing easy?

By managing the production of the paperwork and early submission, Morrison Consultants can make the process easy for you. We expedite your GST filing while guaranteeing compliance and preventing late fines.

How do you file GST in Singapore step-by-step?

1. Using the IRAS registration portal for GST filing login

Start by using your CorpPass to log into the IRAS myTax Portal. Go to "Business Tax Matters" under the GST electronic filing system navigation.

The person(s) submitting the GST return for your company may use the GST e-filing under CorpPass if this is the first time the firm is filing the GST return or if the person(s) filing for you have changed.

The third-party agents managing your GST return filing need to have CorpPass authorization as well.

1. Preparing GST F5 filing return

After logging in, compute your input and output taxes to create your GST F5 return:

• Output Tax: Throughout the quarter, sales invoices for collected GST

• Tax on Input: GST paid on payments and costs of the firm

Total the value of taxable transactions (input tax) and taxable items (output tax) and fill out the GST F5 filing form. Declare the amount of net GST that is refundable or payable. Verify each number a second time to make sure it complies with the IRAS rules.

1. Submitting GST return

Once the GST F5 form is ready, you can use the myTax Portal to submit it. To prevent any late fines or penalties, make sure all the figures are correct before submitting. 

1. Making the necessary GST payment 

After GST return filing, you will receive an acknowledgement page with payment instructions and a summary of your submitted return. 

Payment options include:

• GIRO; suitable for automatic payment processing

• Online financial services make sure you pay by the deadline

• AXS locations; accessible across Singapore

To avoid fines, make sure you pay on time. The GIRO setup and oversight can aid in ensuring smooth transactions.

1. Maintaining GST documents 

Keeping accurate records is essential for complying with GST. Keep a record of the documents below for a minimum of five years:  

• Purchase and sales invoices

• Notes for credit and debit

• Document import and export

• Bank records

Maintaining accurate and well-structured records facilitates the retrieval of required papers for audits or reviews. 

It might be difficult and time-consuming to manage GST filing in Singapore. Using expert services may assist in guaranteeing precision and adherence. Morrison Consultants can offer:

• Correctly drafting and examining GST returns 

• Taking care of timely submission to stay out of trouble

• Controlling payments and creating GIRO agreements 

• Keeping thorough records for compliance and audits

GST late filling penalties 

IRAS may issue a calculated NOA (Notice of Assessments) with a 5% penalty for violating GST filing due date.

Payment failure within 60 days of the GST filing deadline in Singapore will cause a 5% penalty on the outstanding tax, with an additional 2% per month, up to a maximum of 50% of the uncollected tax.

GST late filing penalties in Singapore include fines and potential jail time for inaccurate returns. There is a S$200 penalty for late submissions, with an additional S$200 fine each month once the GST return is not filed by the due filing dates. According to the IRAS Voluntary Disclosure Program, voluntary disclosure can minimise the risk of penalties.

Continued non-compliance may cause a summon from the court and penalties of up to S$5,000 for each offence. 

How to avoid common GST filing mistakes?

Businesses must submit GST accurately because there is no mechanism to alter GST filings. Errors while completing GST returns might seriously affect your finances. The following are common mistakes to avoid on GST returns:

• Businesses overlooking GST on service imports lead to underpayment. Accurate reporting and self-accounting for these services are necessary.

• Claiming input tax on non-GST deductible purchases or prohibited costs may cause errors. Make sure that legitimate tax bills support input tax claims. 

• When manually entering data, human mistakes might lead to serious problems. Put in place thorough checking processes.

• Underpayment occurs when you mistakenly misclassify supplies as exemptions or zero-rated instead of standard-rated. Make sure you correctly file the GST. 

• Even if there are no transactions, submit a NIL return to avoid fines.

Here are some pointers for precise GST filing:

• Check IRAS GST filing deadline, updates and other regulations regularly.

• To prevent mistakes, examine and update supplies' GST classification categories regularly.

• To decrease mistakes and simplify data entry, choose dependable accounting software like Xero.

• Recognise the rules for input tax credits, and learn the ITC regulations so that you may only submit claims for qualified costs.

• Keep thorough records of all of your purchases, invoices, and receipts.

• Carry out internal audits. You can find and fix discrepancies through routine audits.

• Make use of IRAS's online resources for correct and timely electronic GST filing.

• Hire tax advisors or accountants for professional advice.

By adhering to these best practices and avoiding common errors, businesses can guarantee timely and correct GST filling processes, reduce fines, and uphold compliance.    

Wrap Up

Businesses in Singapore carry out GST filling to maintain compliance and improve financial management. 

This article offers instructions on all necessary processes, including how to log through the IRAS GST Registration Portal and keep accurate records. Start the GST filing procedure early and use expert guidance to avoid errors and fines.

You can contact Morrison Consultants for professional advice and help to ensure a seamless and legal GST filing procedure. With the support of our all-inclusive GST filing services, you can manage the challenges of GST compliance and concentrate on your company's operations.  

FAQ 

1. What's the meaning of GST in Singapore? 

A 9% Goods and Services Tax (GST) applies to most goods, services, and imported products in Singapore.

1. Who needs GST filling? 

Companies with taxable revenue beyond SGD 1 million per year must file GST. They can choose to register voluntarily, which enables them to recover all due input GST.  

1. How can businesses prepare to file GST? 

Gather the required paperwork, such as sales strategies, corporation charters, and transaction logs. Make sure to prepare everything in advance for online GST filing with MyTax. 

1. What are the typical errors during GST filling? 

Missing deadlines, inaccurate input tax claims, and misclassifying transactions are common mistakes. To prevent fines, examine and update any GST procedures regularly.