GST IN SINGAPORE
Introduction of GST is seen as a means to lower personal and corporate income tax rates while maintaining a steady revenue base for the government.It is a broad-based consumption tax levied on the import of goods, as well as nearly on all supplies of goods and services in Singapore. The only exemptions are for the sales and leases of residential properties and most financial services. Export of goods and international services are zero-rated. GST is a self-assessed tax. Businesses are required to continually assess the need to be registered for GST. In most cases, registering for GST is compulsory when:
the turnover of your business is more than $1 million for the past 12 months; or you are currently making sales and you can reasonably expect the turnover of your business to be more than $1 million for the next 12 months. Otherwise, you can choose to be voluntarily registered for GST. One can voluntarily registered when: Your annual turnover is not more than 1 million SGD, or
You only supply goods outside Singapore (out-of-scope supplies), or You make exempt supplies of financial services that are also deemed as international services If you make only zero-rated supplies you can apply for an exemption from registration, even if your taxable turnover exceeds the registration limits. Suppose business A imports raw materials from overseas then it will pay GST for imports and will claim GST paid for imports from IRAS which is called as input tax. Business A uses the raw material to make toys and sells the completed toy to business B. and then A will charge GST for sale of toys which is called as output tax and report and will pay GST to IRAS.B will pay GST to A when purchasing toys and will Claim GST paid to A from IRAS (*input tax)*.Than business B sells the toy to the end consumer and will charge GST for sale of toy and will report and pay GST to IRAS.And at the end end consumer will pay...
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