GST is the value added tax (VAT) on domestic consumption, designed for the tax burden to fall on the final consumer. The current rate in Singapore is 7%. According to the GST Act, GST must be charged on any supply of goods or services made in Singapore where it is a taxable supply made by a taxable person in the course or furtherance of any business carried on by him.
It becomes compulsory to register to collect GST if the firm’s annual turnover is expected to exceed or has exceeded S$1m from the sale of taxable goods and services. However, a person may also apply to collect GST voluntarily so that claiming of GST can be done with respect to business purchases.
GST Schemes
In order to grant relief from GST, certain schemes have been put in place:
- Bad debt relief
- Second hand goods scheme
- Import relief
- Major exporters scheme
- Bonded warehouse scheme
- Zero GST warehouse scheme
- Approved third party logistics company scheme
- Approved marine fuel trader scheme
For more information on these schemes, please refer here.