Written by Sneha Patwari, Corporate Secretary Lead
I've guided hundreds of founders through the incorporation process across Hong Kong and Singapore. The questions are always different; the mistakes are usually the same. I write to help people avoid them.
Key Takeaways
GST in Singapore remains 9% in 2026, unchanged since the last rate increase.
If your annual taxable turnover exceeds SGD 1 million, or you expect it to, you must register for GST, generally within 30 days.
GST-registered businesses must file returns and pay any GST owed within one month after each accounting period. Penalties start immediately if you miss the deadline.
GST-registered businesses are also required to keep business and accounting records for 5 years, even after ceasing operations.
InvoiceNow, Singapore's e-invoicing network, is becoming mandatory for GST-registered businesses in phases running from November 2025 to April 2031. Check where your business falls on the schedule so you're not caught off guard.
If you're running a business in Singapore, Goods and Services Tax (GST) isn't something you can ignore. At 9%, GST affects how you price your products, manage cash flow, and stay compliant with IRAS (the Inland Revenue Authority of Singapore).
This guide covers what GST is, when you need to register, how to work out what you owe, and what's changing. The InvoiceNow e-invoicing mandate in particular has moved much further than most businesses realise, and getting caught unprepared means scrambling to switch accounting software on short notice.
Not yet registered? Read our complete guide to company registration in Singapore.
What Is Goods and Services Tax (GST)?
Goods and Services Tax, or GST, is Singapore's version of a consumption tax, and one part of the wider Singapore tax system. In many other countries, you'll hear it called VAT (Value-Added Tax).
As of 2026, 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 SGD 1,000 at Store ABC, which is a GST-registered company, he pays a total of SGD 1,090 after GST.
GST is charged to the end consumer, not to the business. It doesn't become a cost to your company. You're simply acting as a collecting agent on behalf of IRAS.
How GST Works for Singapore Businesses
Once your business is GST-registered, you charge GST on your sales and can claim GST back on certain business purchases. This is where output tax and input tax come in.
- Output tax: the GST you collect from 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 net the two:
- If output tax is higher than input tax, you pay the balance to IRAS.
- If input tax is higher than output tax, you can claim a refund from IRAS.
Example of GST Calculation
Say your company is a GST-registered design agency, and you bill a client SGD 20,000 for a project in Q1. You charge 9% GST on top, so the client pays you SGD 21,800 in total (SGD 20,000 + SGD 1,800 GST). That SGD 1,800 is your output tax.
In the same quarter, you spend SGD 6,000 on software subscriptions and contractor fees from other GST-registered businesses, paying SGD 540 in GST on those purchases (9% of SGD 6,000). That SGD 540 is your input tax.
At the end of the quarter, you net the two:
| Item | Amount |
|---|---|
| Output Tax Collected | SGD 1,800 |
| Less: Input Tax Paid | SGD 540 |
| GST Payable to IRAS | SGD 1,260 |
If your input tax had been higher than your output tax, for example because you made a large equipment purchase that quarter, IRAS would refund you the difference instead of you paying anything.
Taxable and Non-Taxable Goods and Services
Not everything in Singapore is subject to GST. IRAS classifies supplies as shown below.
| Type of Supply | GST Rate | Examples |
|---|---|---|
| Standard-Rated Supplies | 9% | Most local sales of goods (electronics, clothing, food); sale of imported low-value goods; most local services (spa treatments, consultancy); imported services from overseas providers |
| Zero-Rated Supplies | 0% | Exports of goods (a laptop shipped overseas); international services (an air ticket from Singapore to Thailand) |
| Exempt Supplies | Not applicable | Sale or rental of residential property; financial services like bank loans or interest; investment in precious metals; digital payment tokens (e.g. Bitcoin) |
| Out-of-Scope Supplies | Not applicable | Transactions entirely outside Singapore; goods moved between overseas locations; sales within a Free Trade Zone; sales within a Zero GST Warehouse; private non-business transactions |
Here's what this means in practice:
- Standard-rated supplies: you charge 9% GST and report it to IRAS.
- Zero-rated supplies: you don't charge GST, but you can still claim back GST on your business expenses.
- Exempt supplies: you don't charge GST, and you can't claim GST on related expenses either.
- Out-of-scope supplies: these sit outside the GST system entirely. No GST, no reporting.
Does My Company Need to Register for GST?
You must register for GST if your annual taxable turnover exceeds SGD 1 million. Taxable turnover means the total value of taxable supplies your business made in Singapore.
This is assessed in two ways:
- Retrospective view: if your turnover in the past 12 months has already exceeded SGD 1 million, you must apply for GST registration by 30 January of the following year. Registration takes effect from 1 March.
- Prospective view: if you expect your turnover in the next 12 months to exceed SGD 1 million, for example through signed contracts or forecasted sales, you must apply within 30 days of making that forecast.
When does prospective registration take effect? It depends on when you made your forecast, following a grace period IRAS introduced on 1 July 2025.
- If your forecast was made on or after 1 July 2025, your registration takes effect 2 months after the date of your forecast. For example, if you forecast on 2 September, you're registered from 2 November.
- If your forecast was made before 1 July 2025, the older rule applies: registration took effect on the 31st day after your forecast date.
The Second Minister for Finance announced this 2-month grace period on 28 February 2025, giving businesses more breathing room to update pricing and systems before they need to start charging GST, instead of the tighter 31-day window that applied before.
You still need to apply for registration within 30 days of your forecast either way. Only the effective date, when you must start charging GST, changed.
Warning: If you fail to register on time, IRAS backdates your registration to the date you should have registered. You'll owe GST on all past sales from that date, even if you never collected it from customers. You may also face a fine of up to SGD 10,000 and a penalty of 10% of the GST due, with possible prosecution in serious cases. If you disclose the late registration voluntarily before IRAS catches it, the fine and penalty are usually waived, though you'll still need to pay the GST owed.
Registration Under Special Rules
Even below the SGD 1 million threshold, you may still need to register under:
- Reverse Charge Regime: if your business procures services from overseas suppliers or imports low-value goods, and you're not entitled to a full input tax credit.
- Overseas Vendor Registration (OVR) Regime: if you're an overseas supplier, electronic marketplace operator, or re-deliverer selling digital or non-digital services or low-value goods to non-GST-registered customers in Singapore.
Voluntary Registration
If your turnover is below SGD 1 million and none of the special rules apply, you can still register voluntarily. Businesses do this to claim input tax credits on expenses, or to look more established when working with GST-registered clients and partners.
Important: once you register voluntarily, you must stay registered for at least 2 years and follow all GST filing rules, including the InvoiceNow requirement covered below. Weigh the ongoing filing work and the requirement to charge customers 9% more against the benefits before applying.
Are There Any Exceptions?
Yes. You don't need to register if more than 90% of your turnover comes from zero-rated supplies and IRAS approves your exemption application.
You can also apply for exemption if your turnover exceeded SGD 1 million in the past year but is expected to fall below that in the next 12 months, for example due to large-scale downsizing. IRAS will require supporting documents to verify the projection.
How to Apply for GST Registration
You apply for GST registration online through the IRAS myTax Portal using Corppass. IRAS also runs an e-Learning course, "Overview of GST", covering how GST works and what your responsibilities are.
For voluntary applications, completing the course and passing the quiz is mandatory, unless the business is managed by someone already experienced with a GST-registered business, or a recognised tax professional handles the filing.
IRAS generally processes applications within 10 to 30 working days. Complex cases or missing documents take longer. Once approved, you receive a GST registration number and an effective date, the date from which you must start charging GST. Voluntary registrants must also set up GIRO for GST payments and refunds. The effective date isn't backdated for claiming input tax.
Key Responsibilities After GST Registration
From your registration date, your business has to follow these rules.
| Responsibility | Description |
|---|---|
| Charge GST | Add 9% GST on standard-rated sales and account for it to IRAS. |
| File GST Returns | Submit your GST return online within one month after each accounting period, even with no sales ("NIL return"). |
| Pay GST on Time | Pay the GST you collected by the due date. GIRO payments are deducted automatically. |
| Keep Records | Keep invoices, receipts, and accounts for 5 years, even after your business closes. |
| Show GST-Inclusive Prices | Prices shown to customers must include GST. If you also show GST-exclusive prices, the GST-inclusive price must be equally clear. |
| Issue Invoices | For sales above SGD 1,000, issue a full tax invoice with your GST registration number. Smaller sales can use simplified invoices. |
| Update IRAS | Tell IRAS within 30 days if your business details change (address, ownership, etc.). |
| Use InvoiceNow | Comply with the phased e-invoicing mandate covered below, once your mandatory date arrives. |
The GST InvoiceNow Requirement
InvoiceNow is Singapore's nationwide e-invoicing network, built on the international Peppol standard. Instead of emailing PDF invoices back and forth, InvoiceNow-connected businesses send structured invoice data directly between accounting systems, and IRAS receives a copy automatically for tax administration.
What started as a voluntary option is now becoming mandatory for GST-registered businesses, on a phased timeline running from November 2025 to April 2031:
| Implementation Date | Who It Applies To |
|---|---|
| 1 November 2025 | Companies that register for GST voluntarily within 6 months of incorporation |
| 1 April 2026 | Businesses applying for voluntary GST registration on or after this date, regardless of incorporation date |
| 1 April 2028 | Businesses applying for compulsory GST registration from this date, and existing GST-registered businesses with annual supplies of SGD 200,000 or less |
| 1 April 2029 | Existing GST-registered businesses with annual supplies of SGD 1,000,000 or less |
| 1 April 2030 | Existing GST-registered businesses with annual supplies of SGD 4,000,000 or less |
| 1 April 2031 | Existing GST-registered businesses with annual supplies above SGD 4,000,000 |
If you registered for GST before 2026, IRAS will notify you of your specific mandatory date by mid-2026, based on where your business falls in this schedule.
To ease the transition, the government offers the GST InvoiceNow Transition Grant (up to SGD 1,000 for SMEs and SGD 5,000 for larger businesses) and the InvoiceNow Queen Bee Grant, aimed at larger, well-connected businesses that help onboard their suppliers. Your accounting software needs to be Peppol-enabled to comply. Manual invoices created only in Word or Excel won't meet the requirement once your mandatory date arrives.
How to File GST Returns
You file GST returns electronically on the IRAS website using Singpass.
If you're GST-registered, you submit a return using the GST F5 form within one month after the end of your accounting period. Your return lists the total value of your local revenue, exports, purchases from GST-registered entities, GST collected, and GST claimed during that period.
GST payments are due within the same one-month window as filing. If you pay by GIRO, deductions happen automatically on the 15th day of the following month.
Penalties for Late Filing or Payment
If you miss the filing deadline, IRAS starts charging penalties immediately. A SGD 200 fine applies as soon as the deadline is missed, plus another SGD 200 for every full month the return stays outstanding, up to SGD 10,000 per return. Not filing at all can also lead to a court fine of up to SGD 5,000.
If you don't pay on time, IRAS imposes a 5% penalty on the amount owed. If the tax is still unpaid 60 days later, an extra 2% is added each month, capped at 50% of the total tax due.
Are There Any GST Schemes to Help Businesses?
Yes. Several schemes exist to ease cash flow for GST-registered businesses.
| Scheme | Description |
|---|---|
| Cash Accounting Scheme | Eases cash flow for small businesses. You only account for output tax when payment is actually received. |
| Discounted Sale Price Scheme | Charge GST on 50% of the selling price when selling a second-hand or used vehicle. No prior IRAS approval needed. |
| Gross Margin Scheme | Lets second-hand dealers who bought goods free of GST charge and account for GST on the margin only. |
| Hand-Carried Exports Scheme (HCES) | For businesses zero-rating supplies to overseas customers for goods hand-carried out via Changi Airport. |
| Import GST Deferment Scheme (IGDS) | Approved businesses pay import GST when their monthly GST return is due, instead of at the point of import. |
| Major Exporter Scheme (MES) | Suspends GST on non-dutiable goods at the point of import and when goods leave Zero GST Warehouses. |
| Tourist Refund Scheme (TRS) | Lets GST-registered retailers provide GST refunds to tourists, directly or via a Central Refund Agency. |
| Zero GST (ZG) Warehouse Scheme | Administered by Singapore Customs. Import GST on non-dutiable overseas goods is suspended while goods sit in a ZG warehouse, and only payable when goods enter the local market. |
Can My Company De-register for GST?
Yes, if your business no longer needs to charge GST. Common reasons include:
- Your annual taxable turnover falls below SGD 1 million and isn't expected to exceed it in the next 12 months.
- Your business ceases operations.
- You sell the business as a whole to someone else.
Submit your application to IRAS within 30 days of the change, with supporting documents. Once approved, you can stop charging GST.
Note: even after de-registering, you must keep your records for at least 5 years in case IRAS requests them.
Final Thoughts
GST is one of the more mechanical parts of running a Singapore business: register on time, charge the right rate, file and pay within the deadline, and keep your records. Where businesses get caught out isn't usually the 9% rate. It's the deadlines and the compliance infrastructure around it, from GST filing to your company's annual return.
The clearest example right now is InvoiceNow. What began as a voluntary pilot is becoming mandatory for every GST-registered business by 2031, and the first phases have already taken effect. Businesses that check their mandatory date now and get their accounting software Peppol-ready early avoid the scramble that comes with switching systems under deadline pressure.
FAQs
Does every Singapore company need to charge GST?
No. Only GST-registered businesses can charge GST, and it's mandatory to register once your taxable turnover exceeds SGD 1 million (or you expect it to). If you're not GST-registered, you're not allowed to charge or collect GST from customers. Doing so is an offence in Singapore, regardless of your turnover.
What are zero-rated supplies, and do I still charge GST on them?
Zero-rated supplies are goods exported out of Singapore and services provided internationally, such as an air ticket from Singapore to Thailand. You charge GST at 0%, meaning no GST is added to the price, but unlike exempt supplies, you can still claim back the GST you paid on related business expenses.
Do I need to use InvoiceNow if I register for GST voluntarily in 2026?
Yes. From 1 April 2026, all new voluntary GST registrants must comply with the InvoiceNow requirement regardless of incorporation date, and companies that registered voluntarily within 6 months of incorporation were already required to comply from 1 November 2025. Your accounting software needs to be Peppol-enabled before you register.
How is GST calculated on a sale?
You add 9% to the price of standard-rated goods or services. On a SGD 20,000 invoice, that's SGD 1,800 in GST, for a total of SGD 21,800. At the end of your filing period, you subtract the GST you paid on business purchases (input tax) from the GST you collected (output tax) to work out what you owe IRAS, or what IRAS owes you if input tax was higher.
Is there a GST Voucher for Singapore businesses?
No. The GST Voucher scheme is for lower- and middle-income Singaporean households, offsetting living expenses through cash, MediSave, and utility or S&CC rebates. Businesses don't receive GST Vouchers, but they can benefit from input tax claims and the GST schemes covered above.
