GST Accounting & Reporting Services FAQs

GST

FAQ

A Taxable Supply is a supply of goods and services made in Singapore other than an exempt supply and GST is chargeable on this supply at a standard rate of 7%. Zero-rated supplies, which are also taxable supplies, are subject to GST at 0%.
There are 2 broad categories of exempt supply – the sale and lease of residential properties and financial services (the Fourth Schedule of the GST Act). The difference between exempt supplies and zero-rated supplies is the claimability of input tax, which is allowed in the latter but not the former
An Out-of-Scope Supply is a supply that falls outside the parameters of the umbrella of GST. This applies in several cases, such as when the supply is made outside Singapore, or when the supply is not made by a taxable person, or when the law deems that no supply has been made, etc.
“Taxable Turnover” is the total value of all taxable supplies made in Singapore (excluding GST) in the course of furtherance of business, inclusive of all standard-rated and zero-rated supplies but excluding exempt supplies, out-of-scope supplies and the sale of capital assets.
You can determine your liability to register for GST using the prospective or retrospective view:
  1. Retrospective view
    1. If the total value of all taxable supplies made in Singapore, at the end of any quarter* and the three quarters immediately before that, exceed $1million, a person is liable to register for GST within 30 days of the end of that quarter.
  2. Prospective view
    1. If there are reasonable grounds to believe that the total value of taxable supplies made in Singapore in the next 12 months will exceed S$1million, a person is liable to register for GST within 30 days of the end of that quarter.
* Quarter means a period of 3 months ending on the last day of March, June, September or December.
Commencement of charging of GST should occur with effect from the date of registration of GST. Claims will be from this date forward.
Registration is not necessary if your annual taxable supplies do not exceed S$1 million. However, you can apply for voluntary registration if your annual taxable supplies are below S$1 million or if you have not started making taxable supplies but expect them to exceed S$1 million in the next 12 months. This is primarily subject to the following conditions:
  1. that you make or intend to make taxable supplies in the course or furtherance of your business.
  2. that you make only out-of-scope supplies.
  3. that you make exempt supplies of financial services that are also international services.
After voluntary registration, you must remain registered for at least 2 years, alongside any other conditions that the Comptroller imposes on your business.
When the liability arises, you are expected to inform the Comptroller within 30 days of the end of that quarter and the Comptroller will register you within the next 30 days from that time.
If you are late in registering for GST, you will be guilty of an offence and be liable on conviction to a fine up to S$10,000 and to a penalty equal to 10% of the tax due in respect of each year commencing from the date on which you are required to make the notification or to apply for registration.
  1. e-File accurate GST returns in a timely manner
    1. You need to e-File your GST returns in a timely manner. You will have prescribed accounting periods of monthly, quarterly or half-yearly basis. GST returns must be e-Filed within one month after the end of each accounting period. If there is no transaction done, you are still required to submit a “NIL” GST return.
    2. You need to submit accurate GST returns. To do so, you need to be familiar with the GST rules relating to your business.
    3. Therefore, you may have to engage the required assistance for GST reporting (e.g. full-time accounting staff, computers) and put in place accounting and record-keeping systems (e.g. buy or make modifications to existing accounting system). You may also need to train your staff to ensure they perform the charging and claiming of GST correctly for your business transactions.
  2. Pay tax in a timely manner
    1. When GST charged on your sales is more than GST incurred on your purchases, you need to pay the difference within one month after the end of each prescribed accounting period.
    2. You will need to account for and pay GST to IRAS even if you receive payment from your customers after the end of the prescribed accounting period.
  3. Keep business and accounting records for 5 years
    1. Types of records to keep include:
      • Tax invoices and receipts issued/ received
      • Credit notes and debit notes
      • Business contracts and agreements
      • Tourist refund claim forms (if any)
      • Import and export documents (e.g. permit, bill of lading, air waybill)
      • Business and accounting records (e.g. general ledgers/ debtors, creditors ledgers, purchase orders, delivery notes, purchase and sales books, cash books, records of daily takings, stock records, bank statements, bank-in slips, relevant business correspondences, GST accounts and financial statements)
      • Other documents supporting GST declaration
  4. Change of price displays and invoices
    1. Any price displays, advertisements, publications or quotations in respect of goods or services made to the public must be inclusive of GST. You are required to reflect your GST registration number on all tax invoices, simplified tax invoices and receipts.
    2. Therefore, you may need to incur cost to re-print your price displays and tax invoices to reflect the changes.
  5. Assist in GST Audit
    1. As a GST-registered business, you are subject to audit. Audits can be via telephone interviews, arranged or surprise visits. In the course of audit, your GST refunds (if any) can be withheld. We can also request your suppliers or customers for confirmation of information furnished. Therefore, you need to consider the cost of time and work required in providing assistance.
  6. Accounting for GST On Business Assets At Point Of De-Registration
    1. In the event that your GST registration is cancelled, you need to account for GST on business assets held on the last day of registration if GST was previously claimed on these purchases. This applies when the total market value of these business assets is more than $10,000.
For more information, please click here.
You can apply for de-registration from GST if any of the following occurs:
  1. You have ceased to make taxable supplies;
  2. You expect your taxable turnover for the next 12 months to be $1 million or less;
  3. Your business has ceased;
  4. Your business has been transferred as a whole to another person
However, if you have voluntarily registered for GST, you have to remain GST registered for 2 years unless your business has ceased or has been transferred as a whole to another person.
GST paid on goods and services purchased is considered input tax and this amount can be recovered from IRAS on the making of:
  1. Taxable supplies
  2. Supplies outside of Singapore that would be taxable if they were made within Singapore
  3. Supplies that are disregarded for GST purposes but otherwise would have been taxable supplies
For more information, please click here.

Accounts Services

Account Services

Under the Income Tax Act and the GST Act, you are required to keep your business records for a period of at least five years, for records pertaining to accounting period ending on or after 1 January 2007. Business records for accounting period before 1 January 2007 must be kept for at least 7 years Examples:
Companies with December financial year-end
YARecords for periodTo keep up toRemarks
20051 Jan 2004 to 31 Dec 200431 Dec 2011Seven years
20081 Jan 2007 to 31 Dec 200731 Dec 2012Five years
.
Companies with non-December financial year-end, e.g. 30 Jun
YARecords for periodTo keep up toRemarks
20051 Jul 2004 to 30 Jun 200431 Dec 2011Seven years
20081 Jul 2006 to 30 Jun 200731 Dec 2012Five years
.
For more information, please click here.
Proper records and bookkeeping must be done in order to ensure that accurate filings to IRAS can be done. Estimates are not allowed. Such documents required are receipts, invoices, vouchers, and other relevant documents issued or received from customers/suppliers.
A qualified bookkeeping professional can offer many more benefits than the other options available, when it comes to tracking the books at your business. After the business bookkeeping professional takes over the books, you will also likely have much more free time to focus on other urgent matters to enhance efficiency. Do remember that before hiring a business bookkeeping professional, it will be beneficial to determine the budget available and prioritise which services will be needed.

Singapore GST Accounting & Reporting by Value Accounting.

GST Accounting & Reporting Services – Frequently Asked Questions

Find answers to commonly asked questions on our GST accounting and bookkeeping services.

  1. What are your responsibilities as a GST-registered business?

A GST-registered business is one whose annual taxable supplies exceed $1 million. Once you register your business for GST with Inland Revenue Authority of Singapore (IRAS), you must file your GST return to IRAS regularly and report both your output tax and input tax in your return.

  1. What is the scope of our GST accounting services?

The scope of our services includes accounting for GST, e-filing accurate GST returns on time and keeping business & accounting records for at least five years. It is important to e-file GST returns on time within one month from the end of each accounting to do so. Failure to do so may cause you a fine up to $5,000 or imprisonment. To know more details on fees and services, please refer to this page.

  1. What is the difference between accounting and bookkeeping?

Accounting and bookkeeping are both essential business functions. These two, however, are different. Accounting means the process of providing financial information in various forms, such as income statements and balance sheets. The accounting process likewise includes preparing financial statements, analyzing operation costs, and completing income tax returns.

On the other hand, bookkeeping refers to the method of keeping records of business and financial transactions such as invoices, receipts, and more. The bookkeeping process also includes balancing the general ledger, completing payroll, and posting credits & debits.

  1. What types of business record does your company need to keep?

Your company is required to keep records and accounts of all your business transactions, and these include accounting ledgers, journals, invoices, receipts, vouchers, and any other relevant document. If you’re a GST-registered business, you must keep income records, business expense records, and purchase records.

  1. Why seek accounting and bookkeeping services?

Getting our accounting and bookkeeping services gives you access to a wider range of professionals. Our team comprises highly experienced and trained accountants & specialists who can address your accounting needs efficiently. They are at all time ready to handle any intricate task for your business.

Moreover, outsourcing allows you to focus more on your core business. Your internal team and resources can pay more attention to your core activities.

Connect With Us Today

If you have further questions on our accounting and bookkeeping services, just call or text us at +65 6438 8858/+65 9783 9675/+65 8182 5888. We’d love to discuss how we can help you stay compliant with the ACRA and IRAS requirements.

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