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GST When to Register?

Compulsory GST Registration criteria under the new regime was effective 1 Jan 2019.



Compulsory GST registration needs to be done if a company fulfills 2 criteria:


a. earned more than S$1 mil revenue past 12 months; and

b. forecasts to earn more than S$ 1 mil revenue in the next 12 months.


When to Register? Registration is done at the later of:


a. right after each calendar year end; and

b. at any point when the company earns more than S$1 m in a 12-month period retrospectively and is certain to earn more than S$1 m prospectively next 12 months.


Remember GST paid on purchases can be set off against the GST charged on sales. Before being registered, GST on purchases is simply a cash cost to business.


Documents for GST Registration and Systems


The company needs to complete a form online via myTax Portal or form GST F1 for businesses with no e-access with additional supporting data (GST calculator, profit and loss report, invoices and contracts) and submits it to IRAS. With a properly completed application it normally takes IRAS about 10 working days to process the application and provide you with your GST registration number.


How do we support you and GST?


We advise you if you need to register and we prepare the application and supporting documents on your behalf to ensure it is complete and properly formatted.


The GST return, also called GST F5, is filed quarterly or monthly, within 30 days after the period ends. If there are no transactions a 'nil' return must be filed.


We prepare your Xero accounts for GST compliance and reporting. We determine the frequency of lodgements and a process by which to clarify queries on transactions to ensure minimum risk of non compliance and fines.


Complications for buying and holding stock


We have a lot of experience in this area dealing with a few types of scenarios under the basic rule: "The input tax should be directly attributable to taxable supplies"


1. Back to Back Purchases and Sales - Same reporting period

Back to back transactions are when purchases bought are the same in quantity as being sold.

For purchases and sales completed in the same period, GST claim can be made in the same periods.


2. Back to Back Purchases and Sales - Different periods

For purchases made in a period but sales in subsequent period, GST claim needs to be made in the subsequent period. Tip: One way to claim in the same month is to Invoice the client in the same month the purchase is made.


3. Non Back to Back Purchases and Sales

Purchases for which GST is paid for and claimed, need to be associated to taxable supplies. If a portion of purchase is being sold by the end of each period, the GST input tax to be claimed needs to be apportioned based on the quantity sold against total quantity purchased.


Voluntary Registration?


If you have a high level of GST'able purchases but don't meet the compulsory criteria for registration you may want to opt for voluntary registration. We can advise on that too.


IRAS Link: https://www.iras.gov.sg/irashome/GST/Non-GST-registered-businesses/Registering-for-GST/Applying-for-GST-Registration/


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