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Goods and Services Tax ('GST') was introduced into Singapore in 1994 at 3%. It is now 7%. All taxable supplies of goods or services are liable to GST - exceptions apply to some financial services.
For foreign companies making taxable supplies in Singapore, there may be a statutory obligation to register for GST. Once registered, non-resident traders must comply with local filing rules (see below)
Typical situations requiring a Singapore GST registration include:
There is an annual GST registration threshold of SGD 1,000,000 per annum. It is not compulsory to register if your annual sales turnover is below this amount.
A foreign company may register for GST without the requirement to form a local company; however they must appoint a Singaporean GST fiscal representative. The representative and company are jointly liable for the reporting and payment of GST to the Singaporean authorities. In addition, the agent is responsible for all communications between the company and the Singaporean tax authorities.
Read about Singapore GST compliance here.
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