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Effective form April 01, 1994, supply of goods and services in Singapore will be levied with the Goods & Services Tax (GST).
The 7% rate is fixed for a period of at least five years. Businesses with annual taxable supplies of more than S$1 million must register for GST.
All exported goods and international services (as defined) wll attract a zero GST rate such that no GST is payable on such items. In addition, the supplier is able to claim a refund of the related input GST.
Imports of goods are generally subject to 3% GST at the time of importation, based on the CIF value. Where the importer is eligible for the Major Exporter Scheme (MES), no GST is charged upon importation.
Goods brought into a registered bonded warehouse from overseas are treated as not having entered into Singapore, and are therefore not subject to GST until the goods leave the warehouse and are "imported" into Singapore.
Registered businesses have to file quarterly returns based on accounting periods allocated by the GST Comptroller. Approval is required if the taxpayer wishes to file on a monthly or six-monthly basis.
Certain financial services are specifically exempted from GST. As a general rule, any input GST incurred in making exempt supplies is not creditable or refundable. The sale or lease of residential accommodation is also exempt.
The input GST incurred in respect of exempt supplies is not creditable or refundable unless it falls within the de minimus rule or is limited to making certain types of exempt supplies. Such irrecoverable input tax will then become a business cost to the company.
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