Goods & Services Tax (GST) Guide For Businesses in 2025

If you’re running a business in Singapore, Goods and Services Tax (GST) isn’t something you can ignore. At 9% in 2025, GST affects how you price your products, manage cash flow, and stay compliant with Singapore tax rules.

Whether you’re a new founder or an established company, understanding GST is key to avoiding costly mistakes and building trust with your customers.

This guide will explain everything you need to know about GST, including:

✅What GST is and how it works

✅When your business must register for GST

✅How to apply for GST registration

✅What must a business do after GST registration

✅How to file and pay your GST return

What Is Goods and Services Tax (GST)?

Goods and Services Tax, or GST, is Singapore’s version of a consumption tax. In many other countries, you’ll hear it as VAT (Value-Added Tax).

As of 2025, the GST rate is 9%. This means GST-registered businesses must add 9% to the price of their taxable goods and services. For example, if Danny buys a phone for $1,000 at Store ABC, which is a GST-registered company, he will pay a total of $1,090 after GST.

GST is charged to the end consumers and not to the businesses. Therefore, it does not become a cost to the company and is merely acting as a collecting agent on behalf of the Inland Revenue Authority of Singapore (IRAS).

How GST Works for Singapore Businesses

When your business is GST-registered, you’re required to charge GST on your sales, and you’re also allowed to claim GST on certain expenses. This is where output tax and input tax come in.

• Output tax: The GST you collect from your customers when you sell goods or services.
• Input tax: The GST you pay on business purchases, such as supplies, equipment, or services from other GST-registered companies.

At the end of each filing period, you calculate the difference:

• If your output tax is higher than your input tax, you pay the balance to IRAS.
• If your input tax is higher than your output tax, you can claim a refund from IRAS.

Taxable and Non-Taxable Goods and Services

Not everything in Singapore is subject to Singapore GST. To make things clearer, IRAS classifies supplies as shown below.

Here’s what this means for businesses.

• Standard-rated supplies: You must charge 9% GST and report it to IRAS.
• Zero-rated supplies: You don’t charge GST, but you can still claim back the GST you pay on your business expenses.
• Exempt supplies: You don’t charge GST, but you also can’t claim GST on related expenses.
• Out-of-scope supplies: These sit outside the GST system altogether, so GST rules don’t apply and no reporting needed.

Does My Company Need to Register for GST?

As a business, you must register for GST if your annual taxable turnover exceeds $1 million. Note that taxable turnover refers to the total value of the taxable supplies that your business made in Singapore.

This can be assessed in two ways:

• Retrospective view: If your turnover in the past 12 months has already exceeded $1 million, you must apply for GST registration by 30 January of the following year. Your registration will take effect on 1 March.
• Prospective view: If you expect your turnover in the next 12 months to be more than $1 million, for example, through signed contracts or forecasted sales, you must apply for GST registration within 30 days of making that forecast.

Registration Under Special Rules

Even if your turnover does not exceed the $1 million threshold, you may still be required to register under:

• Reverse Charge Regime: If your business procures services from overseas suppliers or imports low-value goods, and you are not entitled to a full input tax credit.
• Overseas Vendor Registration (OVR) Regime: If you are an overseas supplier, electronic marketplace operator, or re-deliverer that sells digital or non-digital services or low-value goods to non-GST registered customers in Singapore.

Voluntary Registration

If your turnover is below $1 million and you do not fall under the special rules, you can still choose to register voluntarily. Some businesses do this to claim input tax credits on their expenses, or appear more credible when working with GST-registered clients and partners.

Are There Any Exceptions?

Yes. You are not required to register for GST if more than 90% of your turnover comes from zero-rated supplies and you apply to IRAS for an exemption.

Another situation is when your turnover has exceeded $1 million in the past year but is expected to fall below this level in the next 12 months due to specific circumstances, such as large-scale downsizing. In this case, you may also apply for exemption, but IRAS will require supporting documents to verify your projection.

How to Apply for GST Registration

You can apply for GST registration online through the IRAS myTax Portal using your CorpPass. As part of the process, IRAS encourages all businesses to complete its e-Learning course “Overview of GST”, which explains how GST works and your responsibilities.

For voluntary applications, completing the course (and passing the quiz) is usually mandatory unless the business is managed by someone already experienced with GST, or the preparer is a recognised tax professional.

Once your application and documents are submitted, IRAS generally processes them within 10 to 30 working days. If approved, you will receive a GST registration number and an effective date of registration (the date from which you must start charging GST). For voluntary registrations, you must also set up a GIRO account for GST payments and refunds, and the effective date will not be backdated for claiming input tax.

Key Responsibilities After GST Registration

From the date you’re registered, your business has to follow a few key rules.

How to File GST Returns

In order for you to file GST returns, you can do so electronically on the IRAS website (using Singapass).

If your business is a GST-registered business, you are required to submit a return using the GST F5 form to IRAS within one month after the end of the accounting period. In your return, you will need to list the total value of your local revenue, exports, and purchases from GST-registered entities, GST collected, and GST claimed during that accounting period.

GST payments are also due within 1 month after the end of the accounting period (the same deadline as filing). If you pay by GIRO, deductions will be made automatically on the 15th day of the following month.

Penalties for Late Filing or Payment

If you miss the deadline to file your GST return, IRAS will start charging penalties right away. A $200 fine applies once the deadline is missed, and an additional $200 is added for every full month the return remains outstanding, up to $10,000 per return. In more serious cases, not filing at all can also result in a court fine of up to $5,000.

If you don’t pay your GST on time, IRAS imposes a 5% penalty on the amount owed. If the tax remains unpaid after 60 days, an extra 2% is added each month, capped at 50% of the total tax due.

Are There Any GST Schemes to Help Businesses?

Yes, there are various GST schemes to help ease the cash flow for businesses. Here are some schemes available.

Can My Company De-register for GST?

Yes, you may apply to cancel your GST registration if your business no longer needs to charge GST. Common reasons include:

• Your annual taxable turnover falls below $1 million, and you don’t expect it to exceed this amount in the next 12 months.
• Your business ceases operations.
• You sell your business as a whole to someone else.

You need to submit an application to IRAS within 30 days of the change, along with supporting documents. Once approved, you then can stop charging GST.

Final Thought

The Goods and Services Tax (GST) in Singapore is an important aspect of the country's tax system. It is a form of indirect tax that is levied on the supply of goods and services and the importation of goods.

Knowing when to register, what to charge, and how to stay compliant will save your business from costly mistakes. As rules continue to evolve, keeping up to date ensures your company can grow with confidence in Singapore’s market.