Charging and Collecting GST in Singapore

Output tax

Once registered for GST, a company must charge GST on its supplies at the prevailing rate. This GST that is charged and collected is known as output tax. Output tax must be paid to IRAS.

Input tax

The GST that a company incurs on business purchases and expenses (including import of goods) is known as input tax.

If your business satisfies the conditions for claiming input tax (as detailed below), you can claim the input tax on your business purchases and expenses. This input tax credit mechanism ensures that only the value added is taxed at each stage of a supply chain.

You must satisfy these conditions to claim input tax:

• You are GST-registered;
• The goods or services must have been supplied to you or the goods have been imported by you;
• The goods or services are used or will be used for the purpose of your business;
• Local purchases must be supported by valid tax invoices addressed to you or simplified tax invoices at the time of claiming the input tax;
• Imports must be supported by import permits which show you as the importer of the goods;
• The input tax is directly attributable to taxable supplies (i.e. standard-rated supplies and zero-rated supplies), or out-of-scope supplies which would be taxable supplies if made in Singapore;
• The input tax claims are not disallowed under Regulations 26 and 27 of the GST (General) Regulations.

Leverage the expertise of qualified professionals who can help you with GST services in Singapore.

Process for paying Output Tax and claiming Input Tax credits

As a GST-registered company:

• You must submit your GST return to IRAS one month after the end of each prescribed accounting period. This is usually done on a quarterly basis.
• You should report both your output tax and input tax in your GST return.
• The difference between output tax and input tax is the net GST payable to IRAS or refunded by IRAS.