The GST rate in Singapore is 7%. It is collected by the GST registered businesses from their consumers. This Value Added Tax is passed to the Inland Revenue Authority of Singapore (IRAS). GST was introduced to reduce the burden of the other three taxes like the corporate, personal, and direct taxes.
All businesses that exceed the turnover limit of $1 million in a year are liable to be registered for GST. They also have to file for GST returns even they had no business the current year. GST was introduced in 1994 in Singapore. Since then there have been too many amendments in the GST regulations. This has often confused businesses because during GST Audit they have paid penalties for not following the regulations properly.
Thus, the best way of avoiding the hassle of GST audits, people hire chartered accounts or corporate advisories for GST audit services. Morrison Management has 30 years of experience under the name of Raffles Corporate Advisory Services. They have qualified and experienced teams from Singapore and the Philippines that now conduct business around the world. Their team is specialized in GST and they will keep you updated with the amendments in GST regulations to avoid any company’s loss.
Benefits of GST Audit
It helps in keeping a check on the required taxes. The taxable person cannot pay half or more and there should not be any excuse for not paying at all. By registering under GST, you are liable to make payments on time. The company remains sincere with its business by collecting receipts from every consumer while filing for returns. All logbook entries match with the claims mentioned which help in getting GST returns easily. After getting GST registration, the company will have to stay registered for a minimum of two years.
If your business is not registered under GST, then you might decide if it is feasible or not, by reading these few important factors –
- As a registered business, you can offset any input tax you paid, against the output tax you received. If your business pays a good amount of input tax then it is wise to register.
- GST registered businesses are supposed to maintain a logbook, accounting details, and other obligations that a business needs to cater to. This includes an additional cost.
- If you’re GST registered, then you will have to charge GST in every supply to your consumers. This may be challenging because your price increases due to additional GST and your competitor doesn’t add GST to the bill because they are not registered.
- GST registration leaves a positive impact on consumers. Often it is seen that all businesses who don’t charge GST because they are not registered, are considered small businesses and consumers don’t like doing business with them as they don’t seem to be trustworthy.
It is good to understand the benefit of GST registration even if you don’t fall within the threshold of the $1 million limits. The best way will be to seek help from a professional who is ready to explain and help in any manner.