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For non-GST registered businesses (including registering for GST)

Important Dates Tax forms e-Tax guides e-Services

On this page:
Is GST registration compulsory?
Computing my business turnover
Late notification of liability for GST registration

Is GST registration compulsory?

You are required to continually assess whether your business needs to be registered for GST compulsorily.

In most cases, registering for GST is compulsory when:

  • your taxable turnover for the past 4 quarters* is more than $1 million (unless you are certain that business turnover in the next 12 months will not exceed $1 million); or
  • you are making or intend to make taxable supplies and you can reasonably expect your taxable turnover in the next 12 months to be more than $1 million.

If your situation is either of the above, you need to apply for GST registration within 30 days of the date which your registration liability arises.

If your situation does not fall within both circumstances, you do not need to register for GST. However, you may choose to register for GST on a voluntary basis after careful consideration. Please refer to our flowchart (compulsory or voluntary registration) or e-Tax Guide Do I Need To Register? (312KB) for more details on determining if you should register under compulsory basis, voluntary basis or do not qualify for GST registration.

*Note: Business turnover for the past 4 quarters is determined at the end of any quarter and consist of the total value of your turnover in that quarter and the previous 3 quarters. Quarter refers to a period of 3 months ending on the last day of March, June, September or December.  
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Computing my business turnover

For GST registration purpose, the method to use for computing business turnover depends on your business set-up (e.g. sole-proprietorship, partnership, private limited company).

 

  Sole-proprietorship (Individual) Partnership  Company
(e.g. Private Limted Company)
How to compute business turnover?

Combine the turnover of:

  • all your sole-proprietorship businesses,

AND

income derived from your trade, profession or vocation (e.g. a taxi driver, hawker, commission agent such as insurance agent or multi-level marketing agent, freelancer such as fitness instructor or book-keeper,  accountant with own business practice, etc.)

Refer to example below for illustration.

Combine turnover of all partnership businesses with the same composition of partners.

Refer to example below for illustration.

Compute turnover of that single company.

If your company (as a legal entity) owns sole-proprietorship businesses, you need to combine the turnover of

  • the company, and
  • all its sole-proprietorship businesses.
How will my businesses be registered for GST?

GST registration will be in the name of the sole-proprietor (i.e. your name).

All sole-proprietorship businesses under your name will be GST-registered. This includes sole-proprietorship businesses which you may set up in the future.

GST registration will be in the name of the respective partnership businesses.

Once your partnership is GST–registered, all businesses with the same composition of partners need to be GST-registered. This includes businesses with the same composition of partners which you may set up in the future.

GST registration will be in the name of your company.

Example for sole-proprietorship

You are a sole proprietor with 2 sole-proprietorship businesses (Business A and B) and you drive a taxi on a part-time basis.  In the past 12 months, the turnover of Business A is $500,000,  the turnover of Business B is $490,000 and the income derived from your taxi driving is $30,000.

SP turnover example

To compute your business turnover for GST registration purpose, you need to combine the turnover for Business A, Business B and the income derived from taxi driving.

Total Turnover/Income = $500,000 + $490,000 + $30,000 = $1,020,000

As the combined turnover (including the income from the taxi driving) has exceeded $1 million, you must register for GST immediately if you can reasonably expect your total turnover to be more than $1 million for the next 12 months.

Example for partnership

You and Mary are partners and have 2 partnership businesses (Business C and D). You also have another partnership business (Business E) with John. In the past 12 months, the turnover of Business C is $200,000, the turnover of Business D is $300,000 and the turnover for Business E is $600,000.

Partnership turnover example

To compute your business turnover for GST registration purpose, you need to combine turnover of all partnership businesses with the same composition of partners. Therefore, you would combine turnover for Business C and Business D only. You would separately compute the turnover for the business (i.e. Business E) owned by you and John for GST registration purpose.    

Business Turnover (partnership with Mary) = $200,000 + $300,000 = $500,000

As the combined turnover is $500,000, you need not register for GST if you can reasonably expect your business turnover to be less than $1 million for the next 12 months. However, you may wish to apply for voluntary GST registration after careful consideration
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Late notification of liability for GST registration

If a business who is required to register for GST compulsorily but fails to do so within the required time, that business may be liable to:

  • a fine of up to $10,000; and
  • a penalty equal to 10% of the tax due from the date on which the business is required to apply for GST registration.

The business’s effective date of registration will be back-dated to that day that its liability to register arose. It will be required to file its GST returns and account for GST to the Comptroller on all the past standard-rated supplies it has made since the effective date of registration. This is regardless of whether it can recover the GST on his past supplies from his customers. 

When GST can be collected from its customers for those past standard-rated supplies, the business needs to account for GST based on the prevailing GST rate at the time of supply. When GST cannot be collected from them, we are prepared to grant an administrative concession for the business to account for GST based on the tax fraction of the consideration received for all its standard-rated supplies made since the effective date of registration.

 

Year GST Rate Tax Fraction
1 Apr 1994 to 31 Dec 2002 3% 3/103
1 Jan 2003 to 31 Dec 2003 4% 4/104
1 Jan 2004 to 30 Jun 2007 5% 5/105
1 Jul 2007 onwards 7% 7/107

 
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For GST purposes, all currency/monetary amounts refers to Singapore dollars.

 

FAQs

No, you can exclude income from sale of capital assets when computing my business turnover for GST registration purpose. 


Last Updated on 30 January 2014


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