What Happens When A Business is GST-registered?

GST-registered companies in Singapore must charge and collect GST on their goods at the prevailing rate (7% at the time of writing). This is referred to as output tax, and must be paid to IRAS.

You’ll also be able to claim input tax on your business purchases and expenses.

Filing for GST Returns

Once a business is GST-registered, they must file for GST tax returns on a monthly or quarterly basis. They will be required to report their output and input tax and file for GST tax returns via the F5 tax form. If there are not GST transactions during the accounting period, the business will still be required to file a nil return.

If your output tax is higher than your input tax, you will have to pay the net difference to IRAS within a month after your accounting period.

If your input tax is greater than your output tax, IRAS will refund you the net different within one month or within three months, depending on whether you subscribed to a monthly or quarterly accounting period.

What Do I Need to Fulfill the GST Refund Requirements?

Besides a positive net difference between your input and output tax, you still need to meet the following requirements to qualify for a GST refund:

1. All GST returns must be filed in a timely manner
2. The business must not be under audit by IRAS
3. The business must not have any outstanding taxes or payments to IRAS