Expert GST Consultancy Services that help Your Business navigates the GST regime with ease
The GST regime in Singapore is a well-regulated mechanism for the taxation of goods and services. GST professional services can help your business achieve complete compliance with the tax regulations set by the IRAS.
Professional Guidance for GST Filings to Stay on Top of Compliance Matters
IRAS, or the Inland Revenue Authority of
Singapore, requires every company with a revenue of $1 million or more to
register under the GST regime. A GST-registered
company must collect output taxes on the goods and services that it sells in
Singapore. At the same time, it pays input taxes on the raw materials it
purchases for delivering those goods and services. Managing this tax flow and
timely filing of GST returns are critical for satisfying compliance
matters. That is why professional GST consultancy
services are imperative for sailing through your
A Brief Overview of The GST System in Singapore
Singapore's GST regime applies to any business where the turnover exceeds $1 million. This regime institutes a multi-stage taxation stage consisting of the following components:
● Output Tax: The firm collects GST on behalf of the IRAS from consumers when it sells goods and services within Singapore.
● Input Tax: The business pays GST applicable on the input materials it purchases from suppliers.
The final GST amount due to the government is the net amount after deducing the input tax from the output tax. This deduction ensures that the GST is levied only on the value-added at each stage of the supply journey. The concept of rated supply is relevant for determining the rates of taxation. There are four classifications to consider for evaluating GST ratings:
● Standard Rating: Most goods and services sold in Singapore are standard-rated supplies. A GST of 7% is applicable on these items and services.
● Zero Rating: International services under GST are zero-rated. Exports also come under this category. No GST is applicable on these categories because the entire value chain in both these cases is exempt from GST.
● Exempted Items: The categories eligible for GST exemption include unfurnished residential properties put up for sale or rent, financial services, and the sale of precious metals for investment purposes.
● Goods and Services Beyond the Scope of the GST Regime: Private transactions lie outside the scope of the GST regime. Moreover, goods and services with origin and sale in overseas countries lie outside the ambit of the GST regime.
All GST-registered businesses must follow these rating rules for implementing the GST regime in the prescribed manner. Businesses with a revenue value of less than $1 million can also register for the GST system. Their voluntary registration is subject to review and approval by the IRAS Comptroller. The Comptroller uses the IRAS office's discretion to determine this aspect. Once a company receives approval for GST registration, it must follow all requirements of the GST Act for a minimum of two years.
Why Do You Need the Help of Professional GST Consultants?
Professional services for GST management can help you overcome the complex hurdles of this elaborate tax regime. Experienced GST consultants can help your business navigate the impact of GST on various facets of your financial records. They can identify the relevant rules for paying GST and the exemptions your business can get. These experts can combine the knowledge of these aspects to execute all tax-related tasks, so your firm meets all compliance needs. Professional GST consultants from the Paciol team can offer you the following benefits:
● Eliminate Risks of Error: In-house management of GST filings can often lead to errors. Paciol's professional team uses its well-tested system for evaluating, rating, and managing GST issues to reduce the chances of mistakes. This aspect helps your business avoid compliance issues during regulatory audits and prevents unnecessarily expensive errors.
● Save Time and Resources: If your in-house team engages with the GST regime while managing the sales of goods or services, it can exponentially increase the amount of time they spend on tax management. A professional team can help you save this time and resources to build your core business instead of working on GST returns, income tax management or more.
● Offer Useful Guidance: The professional consultancy team at Paciol can deliver expert guidance to help you design clear tax management plans. Their financial knowledge and expertise can allow your business to handle every aspect of the GST regime in tandem with the other taxation requirements of the firm.
These benefits offer the perfect rationale to sign up for GST professional services.
Reasons to Choose Paciol as your Go-To GST Consultant
The Paciol team is your one-stop solution for all company taxation needs. The experts on the Paciol team specialize in delivering GST consultancy services with a client-first approach. Here's why Paciol is your best choice for the professional management of GST needs:
● Deep-rooted domain expertise
● Timely delivery of service
● Keen focus on client requirements
● Dynamic understanding of the evolving legal landscape for business
1. What is the GST Rate in Singapore? The current rate is 7%.
2. Can the GST Rate in Singapore increase? The regulatory authorities can increase the GST rate in Singapore after evaluating all the associated factors. The rate is due to increase to 9% by January 2024. This 2% hike will occur in January 2023 and January 2024.
3. How can I claim Input Tax for GST in Singapore You can claim Input Tax if your business meets all the relevant criteria for the same. You must support the claim with a tax invoice.
4. Can I claim Input tax if the Tax Invoice is issued in my employee's name? Yes, you can claim the Input Tax in this case, provided that you prove that all purchased goods have been used for business purposes. You have to demonstrate that the employee has acted as an agent of your company for buying the items.
5. Is GST the same as VAT? GST is an indirect taxation instrument like VAT. However, the name "VAT" is not in use in Singapore.