GST Filing Services
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GST Registration Process in Singapore
If you are a business owner, an understanding of GST and its related services are very important in order to continue doing business in Singapore. GST or Goods and Service Tax is a consumption tax that is applied on all the goods and services in Singapore. Goods and Service Tax in Singapore is the same as Value Added Tax (VAT) in other countries. Currently, the Goods and Service Tax rate for Singapore is 7%.
When a company is GST registered, this tax is included in all its products and services. Eventually, this tax is paid back to Singapore’s tax department IRAS (Inland Revenue Authority of Singapore). Making your company GST registered has several advantages which we will discuss in this article. We will also discuss the reasons why you, as a business owner, should hire professional taxation filing services.
Once your company is GST-registered, you must charge and collect GST at the updated prevailing rate. As of 2021 August, the prevailing rates sits at 7%. There are also documentation submission procedures to be followed. A GST-registered business is required to submit documents to the IRAS website on a quarterly basis.
This GST which you charge and collect is on behalf of IRAS and is known as output tax. This means that it has to be paid back to IRAS, on a quarterly basis.
On the other hand, GST incurred on business-related expenses & transactions are known as input tax. Input tax, unlike output tax, can be claimed if conditions for claiming are satisfied.
Why Do I Need GST Filing Services?
Singapore has had GST in place for over two decades and most firms still find it difficult to adhere with the laws and obligations. With increasing amounts of audits conducted by the (IRAS) and a hike in the GST rate in the future years, your company's compliance should be addressed. We provide you with realistic and fast assistance to help you with your day-to-day tasks and adopt a proactive approach to controlling your risks.
Businesses whose turnover is more than $1 Million per annum are liable for GST registration. A GST-registered business has plenty of responsibilities which include:
GST claims & charges
GST accounting & filing
To ensure that your returns are filed accurately and comprehensively, it is important to hire a tax professional to avoid incurring costly penalties.
Benefits of Engaging GST-Filing Services
Now that we have established the importance of registering one’s business for GST, now comes the question of how you can go about this task. The best option for you is to hire the professional services of a corporate firm that specializes in this task. A company like Jaz Corporate Pvt Ltd provides a number of GST filing services for their clients including Voluntary Registration, Compulsory Registration, Applying for exemption from GST, Quarterly GST Submission, and GST Filing (IRAS), IRAS Audits & Investigations Assistance, and Cancellation of GST Registration.
There are several benefits of hiring professional Goods and Service Tax filing services which can give you enough reasons to avail their services. Some of these benefits are discussed below:
1. Saves Time And Effort
One of the greatest advantages of hiring professional GST filing services is that it saves you the time and effort of doing all the taxes alone. Taxes and their related activities take a lot of time and effort. When you outsource these tasks, it saves you from that stress and you can utilize this time in thinking of how you can expand your business further and improve revenues. The professional companies have the right tools, resources, and expertise to carry out this task to the best of their abilities which results in a much better outlook for your company.
2. Less Chance Of Error
Since the professional companies are experts in their field, they know each and every aspect of GST related activities and they know how to accomplish all the tasks with minimum error. The chances of error are greatly minimized as compared to if you were taking care of all the tax-related activities yourself. The company also possesses the right tools and resources which can help you to carry out all the tax-related services in Singapore in the best possible way.
3. Create Better Vision For Your Business And Expand
When you save time by hiring professional GST filing service providers, you can focus on other important aspects of your business, such as defining and monitoring your business strategy, improving your investments, thinking of ways in which you can expand the business and other such areas which will eventually help your business grow. If you are engrossed in all the taxation tasks by yourself, you will not have enough time to create a better vision for your business.
4. Create A Better Impression For Your Business
If you hire professional corporate services for your company, it helps create a good impression of your business in the market. People consider you as a professional company that carries out all of its activities in a professional and efficient manner. This results in greater brand loyalty for your business and more and more customers are attracted to your products and services. This results in better returns on investment and higher profits.
Talk to us today for more tax, GST or accounting services in Singapore. We are a trusted company that has over 10 years of experience in Singapore and we will be able to help you with the above-related services.
How Goods & Services Tax (GST) Work In Singapore
Singapore enterprises who have registered must tax their supplies and services with GST at the current rate. For example, suppose a consumer spends S$10 on your goods or service. When you apply a 7% GST, the ultimate cost is S$10.70; this is known as the output tax. The GST that a firm charges and collects from customers must then be repaid to IRAS via GST filing.
The amount of GST incurred by a firm as a result of purchases and expenses incurred in order to function is referred to as input tax. The input tax is deducted from the output tax, resulting in the amount of tax refunded to you.
Goods and Service Tax is a type of tax that is levied on the supply of products and services as well as on imported goods that are imported to Singapore. It is a type of indirect tax where the consumer is paying and the company or business is just acting as a middle man in collecting those taxes and paying them off to the Singapore government.
Having a GST registered company comes at no cost to the business since the customers will be the actual payee of the taxes. On the other hand, it does help the company in various matters when it is GST registered.
For the main part, it helps ease the burden of paying corporate and personal income taxes. When the amount of corporate income taxes increases in the form of Goods and Service Tax, the government is able to regulate personal income taxes and keep them as modest as possible.
It also results in a steady revenue stream for the government which results in better economic conditions for everyone. In the end, it is the businesses that flourish in better economic conditions of the country.
Another benefit of GST is that it gives your company the image of an established and well-settled one which helps boost your brand name and the customers make positive assumptions about your business. This helps generate more referrals, more customers, and ultimately more revenue.
Since customers pay Goods and Service Tax on every purchase they make, their savings and investments are exempted from further taxations. This results in more savings and investments from the consumers which helps strengthen the economy.
How To Know If You Need To register For GST?
Entrepreneurs can decide for themselves whether or not their company needs to register for GST. The registration is classified into two types: mandatory registration and voluntary registration. It is straightforward to determine whether your company is required to register for GST.
For mandatory registration, you must submit your application if its taxable revenue in the previous year was more than one million dollars, or if a taxable sales of more than one million dollars is expected in the following year.
However, if the turnover is less than a million dollar, you may register voluntarily. Businesses that want to apply for GST will be eligible to claim input tax in business buying and expenses.