What is the Goods and Services Tax (GST) in Singapore?
The Goods and Services Tax (GST) in Singapore is a broad-based consumption tax levied on the supply of goods and services, as well as on imported goods. It functions similarly to VAT in other countries. As of 2025, the standard GST rate is 9%, applicable to most taxable transactions within the country.
GST is collected by businesses on behalf of the Inland Revenue Authority of Singapore (IRAS) and is remitted regularly. For companies that exceed specific revenue thresholds or choose to register voluntarily, GST compliance becomes a critical part of business operations. Proper GST handling ensures transparency, builds trust with clients, and helps avoid regulatory penalties.
Do You Need to Register for GST in Singapore?
Whether or not a business needs to register for GST depends primarily on its annual taxable turnover. If your company’s revenue from taxable goods and services exceeds or is expected to exceed S$1 million, registration becomes mandatory. However, even if your revenue falls below this threshold, you may choose to register voluntarily.
Voluntary registration is often pursued by businesses that deal with GST-registered clients or wish to claim input tax credits. That said, voluntary registration comes with the same obligations as compulsory registration, including regular reporting and record-keeping.
For businesses unsure about whether they meet the threshold or need guidance on procedures, seeking professional support for GST registration in Singapore ensures a compliant and efficient process.
Compulsory GST Registration in Singapore – The Retrospective and Prospective Views
There are two main types of compulsory GST registration:
1. Retrospective Basis
You must register if your taxable turnover for the past 12 months exceeds S$1 million. This is a backward-looking assessment. Once this threshold is crossed, registration must be done within 30 days. Failure to do so may result in penalties and backdated GST obligations.
2. Prospective Basis
If you are reasonably certain that your taxable turnover will exceed S$1 million in the next 12 months (e.g., based on signed contracts or business plans), you are required to register. This is a forward-looking obligation and applies even if you haven’t yet reached the revenue threshold.
Understanding these two registration paths helps companies avoid delays in registration and potential non-compliance issues. Our advisory team can assist with both retrospective assessments and prospective forecasts related to your GST obligations.
Also Read: An Introduction to IRAS Transfer Pricing Guidelines in Singapore
Obligations After GST Registration
Once registered, companies must meet a number of post-registration responsibilities, including:
- Charging GST (9%) on all taxable goods and services.
- Issuing tax invoices to customers.
- Filing quarterly GST returns via the IRAS portal.
- Keeping proper accounting records for at least five years.
- Paying GST collected to IRAS promptly.
Non-compliance can result in fines, penalties, and even deregistration. Companies that are unsure of how to manage these duties often outsource compliance to trusted partners offering accounting and tax filing services in Singapore.
Considerations for Foreign Companies When Selling in Singapore
In the past, services supplied by foreign companies were not subject to GST. However, to ensure parity in GST treatment between foreign and local service providers, overseas suppliers are now required to charge GST on services delivered to Singapore customers starting 1 January 2020 under the Overseas Vendor Registration (OVR) regime.
The OVR regime applies to Business-to-Consumer (B2C) supplies of imported digital services and, from 1 January 2023, extends to non-digital services and low-value goods. It mandates overseas providers of digital services to non-GST registered individuals or entities in Singapore to collect and remit GST for such transactions.
If you’re providing Business-to-Business (B2B) services to GST-registered entities (e.g. companies, partnerships, or sole proprietors) in Singapore, you need not charge GST. Instead, these GST-registered recipients must self-account for GST on the value of the imported services under the Reverse Charge mechanism.
Digital services
Digital services are those delivered over the internet or a digital network. These are typically automated and managed via computer systems. The following are examples of digital services supplied:
- Downloadable content (e.g. mobile apps, e-books, films);
- Paid subscriptions (e.g. online news, magazines, video/music streaming, online games);
- Software and applications (e.g. software downloads, drivers, filters, firewalls);
- Online services (e.g. hosting, cloud storage, file sharing, data backup); and
- Digital facilitation services that support offline deals (e.g. commissions, listing fees, support charges)
Non-digital services
Singapore’s Budget 2021 also introduced GST on non-digital services from overseas. These are services requiring human input, provided online, and not needing the recipient’s presence at the service location, such as virtual hairdressing consultations.
Examples include real-time online training, wellness coaching, academic tutoring, remote healthcare, and counselling provided by foreign professionals. GST will apply to these non-digital imported services starting 1 January 2023.
Also Read: Corporate Service Providers Act 2024 takes effect on 9 June 2025
Low-value goods
For tangible products, GST is currently levied on:
- Items imported via land or sea
- Items brought in by air or post and worth over S$400, excluding alcohol and tobacco, which incur GST regardless of cost
From 1 January 2023, GST will also apply to low-value goods—physical goods under S$400—shipped by air or post to Singapore.
Such goods typically include items bought on international e-commerce platforms such as Shopee, Lazada, Taobao, Amazon, and ezbuy. Therefore, foreign sellers of these goods must begin charging GST on these transactions from 1 January 2023.
GST-registered buyers under the Reverse Charge regime will also need to self-account for GST on low-value goods bought from both local and overseas vendors from that date.
The following table summarises how GST will be levied for goods and services imported into Singapore.
| Type of Goods/Services | Imported goods (imported via land or sea AND goods imported via air or post that are valued above $400) | Low-value goods imported via air or post | Imported digital services | Imported non-digital services |
|---|---|---|---|---|
| Date from which GST will be levied | GST is already being levied for such goods | 1 January 2023 | 1 January 2020 | 1 January 2023 |
| Registration of GST | No registration is needed as import GST will be charged and collected by Singapore Customs | Overseas businesses are required to register under the OVR regime and charge GST | Overseas businesses required to register under the OVR regime have been required to charge GST | Overseas businesses are required to register under the OVR regime and charge GST |
Conclusion
GST registration plays a vital role in tax compliance for businesses operating in Singapore. Whether you’re a local startup crossing the revenue threshold or a foreign company serving Singapore-based clients, understanding your GST responsibilities is key to avoiding penalties and ensuring smooth operations.
Our team brings expertise in Singapore’s GST framework, ensuring your financial transactions are organized for compliance. As an ACRA-registered corporate service provider, we help you stay compliant with the evolving regulatory framework, provide accurate and timely GST filing, and offer strategic advice to optimize your tax position.
