Singapore GST – Full Guide to Tax Rates, Registration, and Filing
Singapore GST System
Singapore is a global business hub, and its tax framework is designed to support both local and international trade. The Goods and Services Tax (GST), which is Singapore's form of value-added tax, applies to most goods and services supplied in the country. This guide will help you understand how GST works in Singapore as of 2025, especially if you're a business owner, importer, or digital service provider.
🔍 What is GST in Singapore?
GST in Singapore is an indirect tax charged on the consumption of goods and services. It is added at each stage of the supply chain but ultimately paid by the final consumer. The tax is collected by businesses and submitted to the Inland Revenue Authority of Singapore (IRAS).
Introduced in 1994, GST has become a vital part of Singapore’s tax system, contributing significantly to public revenue without heavily burdening income earners.
📊 Singapore’s Current GST Rate (2025)
As of January 1, 2024, the GST rate in Singapore is:
- ✅ 9% — flat rate on all standard-rated supplies
There are no tiered tax rates in Singapore, which keeps compliance straightforward for businesses.
🧾 Who Needs to Register for GST?
GST registration is mandatory for businesses whose annual taxable turnover exceeds:
- SGD 1 million (either in the past 12 months or projected in the next 12 months)
If you fall below this limit, you may choose to register voluntarily, but you must follow all GST rules once registered.
📌 What Is Taxable Under GST?
GST applies to:
- Sales of goods and services within Singapore
- Import of goods from overseas
- Digital services supplied by foreign providers to customers in Singapore
- Online platforms selling to Singaporean residents
🚫 What Is Not Taxable?
Some goods and services are either exempt from GST or taxed at 0%. Here's how it works:
- Zero-rated supplies (0% GST): Mostly exports and international services
- Exempt supplies (no GST and no input tax claim): Residential property, financial services, and sale of investment metals
💡 Claiming Input Tax
Businesses registered for GST can recover the GST they pay on business purchases (called input tax), provided:
- The purchase is for business use
- A valid tax invoice is available
- The input tax claim is made within the allowed period
Blocked items like private car expenses or non-business-related purchases are not claimable.
🌍 GST on Overseas Digital Services and E-Commerce
To ensure fair taxation, Singapore introduced GST on digital services and low-value goods imported by consumers:
🔹 Overseas Digital Services:
Foreign companies offering digital services (like streaming, software, cloud platforms) to Singaporean consumers must register and charge GST if their annual turnover crosses SGD 1 million globally and SGD 100,000 from Singapore.
🔹 Low-Value Goods:
Goods imported by air or post valued under SGD 400 are also subject to GST at the point of sale. E-commerce platforms are responsible for collecting and remitting the tax.
📅 GST Filing and Compliance
Businesses must:
- File GST returns quarterly (some file monthly)
- Use the myTax Portal for submissions
- Declare output tax collected and input tax paid
Deadline: 1 month after the end of the GST accounting period
Late filings may attract penalties or interest charges.
🧮 Example Calculation
If you sell an item for SGD 100:
- GST = 9% of 100 = SGD 9
- Total charged to customer = SGD 109
- Business pays SGD 9 to IRAS (after deducting any input tax)
🔐 Special GST Schemes by IRAS
Some registered businesses can apply for simplified schemes:
- Major Exporter Scheme (MES) – For heavy exporters to defer import GST
- Tourist Refund Scheme – Refund GST on goods tourists bring out of Singapore
- Gross Margin Scheme – For second-hand dealers
✅ Key Benefits of Singapore's GST Model
- Simple structure with a single rate
- Low compliance burden for businesses
- Encourages saving and investment by taxing consumption
- Makes Singapore competitive for international businesses