GOODS AND SERVICES TAX
(GST)
“Introduction to GST”
2
E-LEARNING
•
•
•
-
“Introduction to GST” course can now be done online!
e-Learning mode is strongly encouraged over seminar
Benefits include:
On-demand availability: accessible anytime and
anywhere at your convenience
- Self-pacing: control over the pace of learning and
modules can be reviewed as often as needed
- Interactivity: higher knowledge retention through active
learning and use of examples and interactive exercises
etc.
For more information, please visit:
www.iras.gov.sg > GST > For GST-registered businesses >
GST Course "Introduction to GST" (e-Learning/Seminar)
3
COURSE OUTLINE
1.
GST and My Responsibilities
2.
Charging GST on Sales
3.
Accounting for GST on Other Transactions
4.
Claiming GST on Business Purchases and Imports
5.
Price Display, Invoicing and Record-keeping
BREAK
6.
e-Filing GST returns and Correcting Mistakes
7.
Penalties and Recovery Actions
8.
Tips on Compliance
9.
Notifying of Changes to Business and Cancelling GST Registration
10. Where to Get Help
Useful Information
Q&A
4
1. GST and My Responsibilities
 What is GST?
 How does GST Work?
 What are the Responsibilities of a GST-registered
Business?
Relevant e-Tax Guides:
“GST: General Guide For Businesses”
“Do I Need to Register?”
5
1. GST and My Responsibilities
What is GST?
• Tax on domestic consumption of goods and services
and importation of goods
• Paid when:
- Goods or services are purchased from GSTregistered businesses
- Goods are imported into Singapore (collected by
Singapore Customs at point of importation)
• Self-assessed tax
6
1. GST and My Responsibilities
How does GST Work?
GST on supply
of goods &
services
less
GST paid on
business
purchases
(Input tax)
(Output tax)
equals
Net GST
+
Payable to
Comptroller
Refundable from
Comptroller
7
1. GST and My Responsibilities
Import GST = $35
Overseas
Supplier
$500 + $35 (7% GST)
GST-Registered
Wholesaler
Output tax = $49
Input tax = $35
Net GST payable = $14
$700 + $49 (7% GST)
GST-Registered
Retailer
$1000 + $70 (7% GST)
End-consumer
Output tax = $70
Input tax = $49
Net GST payable = $21
8
1. GST and My Responsibilities
What are the Responsibilities of a GST-registered
Business?
A GST-registered business must:
1.Submit returns and pay tax in a timely manner
2.Submit accurate GST returns
3.Maintain listings and keep business and accounting records for 5 years
4.Assist in GST audit
5.Display prices with GST
6.Reflect GST registration number on all tax invoices and receipts
7.Inform IRAS of changes to the business
8.Account for GST on business assets held at point of de-registration
In the subsequent parts of this course, you will learn how to fulfill these
8 basic responsibilities.
9
2. Charging GST on Sales
 Scope of Tax
 Value of Supply Subject to GST
 Absorbing GST
 Accounting for GST
 Bad Debt Relief Claim
Relevant e-Tax Guides:
“GST: General Guide For Businesses”
“GST: Time of Supply Rules”
“GST: A Guide on Export”
“Do I Need to Register?”
“Accounting for GST Absorbed by Businesses”
10
2. Charging GST on Sales
Scope of Tax
GST-registered businesses should charge GST on any
supply of goods or services if it is :
i)
made in Singapore
ii)
a taxable supply
iii)
made by a taxable person
iv)
in the course or furtherance of the business
11
2. Charging GST on Sales
Goods or Services?
Goods
Services
• Possessions obtained in
exchange for money or in kind
• Generally tangible objects
• Could be new or second-hand
• Anything that is not goods
• Performance of duty or work for
another person
• Generally intangible
Example: Furniture
Example: Hairdressing Service
Utilities (e.g. water, electricity)
and space for rent/ sale are
treated as goods for GST
purposes.
12
2. Charging GST on Sales
i) Is the supply made in Singapore?
Goods are supplied in Singapore if the goods are in
Singapore or from Singapore at the time of supply
Services are supplied in Singapore if the supplier
belongs in Singapore
13
2. Charging GST on Sales
ii) Is the supply taxable?
Taxable supply refers to the supply of goods or services
made in Singapore, other than an exempt supply and outof-scope supply.
Examples of types of supplies
TAXABLE SUPPLIES
NON-TAXABLE SUPPLIES
1. Standard-Rated Supply (7% GST)
• Local sales of goods & services
• Sale of Capital Assets
1. Exempt Supply
• Sale and Lease of Residential
Properties
• Financial Services
• Local Sale of Investment Precious Metals
(IPM)
2. Zero-Rated Supply (0% GST)
• Export of Goods
• International Services
2. Out-of-Scope Supply
• Third Country Sales
(Sales outside Singapore)
• Transhipments
• Disbursements
14
2. Charging GST on Sales
iii) Who is a taxable person?
A person that is GST-registered or is required to be
registered for GST under the GST Act.
15
2. Charging GST on Sales
GST registration liability
• Registering for GST is compulsory when:
- Your taxable turnover for the current quarter and the past 3
quarters is more than $1 million (unless you are certain that your
turnover in the next 12 months will not exceed $1 million); or
- You have started or intend to start making sales, and you can
reasonably expect your taxable turnover to exceed S$1 million in
the next 12 months
• Otherwise, the business need not register for GST, unless it chooses
to do so voluntarily
Additional responsibilities for voluntarily registered businesses
• remain GST-registered for at least 2 years
• make taxable supplies within 2 years if you have not started making
taxable supplies at the point of registration
The Comptroller may also impose other conditions and may cancel your
GST registration if any of the conditions are not met.
16
2. Charging GST on Sales
GST registration liability - Rules for Sole-proprietorship
(Owned by an Individual)
• Combine the turnover of all SPship businesses to ascertain the
liability to register
• GST registration is in the name of the SP, not the SPship business
(i.e. Mr Tan owns ABC Company, GST registration will be in the name
of Mr Tan)
• All SPship businesses under the SP’s name will be GST-registered.
This includes any SPship business which you may set-up in the future
• SP should use the same GST registration number to charge GST
for all existing SPship businesses and any newly set-up SPship
business
• Notify IRAS of any new SPship business by sending in its ACRA
Business Profile
17
2. Charging GST on Sales
GST registration liability - Rules for Sole-proprietorship (example)
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.
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.
18
2. Charging GST on Sales
GST registration liability - Rules for Partnership (PP)
• GST registration will be in the name of the respective PP businesses
• Once your PP is GST-registered, you are required to account for output
tax on all taxable supplies in connection with any separate businesses
comprising of the same partners.
19
2. Charging GST on Sales
GST registration liability - Rules for Partnership (example)
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.
Business Turnover (partnership with Mary) = $200,000 + $300,000 = $500,000
As the combined turnover for all partnership businesses with the same
composition of partners 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.
20
2. Charging GST on Sales
iv) What is meant by in course or furtherance of
the business?
Activities carried out in connection to the business
either directly (e.g. sales of trading stocks) or
incidentally (e.g. recovery of expenses from a
related company).
21
APPLICATION EXERCISE
Supplies
StandardRated
(7% GST)
a) Sale of $400,000
worth of goods sent to
a local customer which
he exports to Japan.

Zero-Rated
(0% GST)
b) Deposit of $35,000
in a local bank, which
yielded an interest of
$1,500.
c) Deposit of $35,000
in an overseas bank,
which yielded an
interest of $1,500.
Exempt


Out-of-scope
22
APPLICATION EXERCISE
Scenarios
Taxable
Supply?
Made by
taxable
person?
In course or
furtherance
of business?
Charge GST?
d) A GST-registered art
dealer bought a painting
in London, sells and
directly sends it to his
customer in Japan.
N
Y
Y
N
(out-of-scope)
e) A GST-registered art
dealer imported a
painting from London,
sells and exports it to
his customer in Japan.
Y
Y
Y
Y
(0%)
f) A GST-registered
sole-proprietor receives
income (fares) from part
time taxi-driving.
Y
Y
Y
Y
(7%)
23
APPLICATION EXERCISE
Scenarios
g) A non-GST registered
developer constructs
and sells solely
residential properties.
h) A GST-registered
developer develops and
sells residential and
commercial properties
in a mixed development
project in Singapore.
i) A GST-registered
developer develops and
sells commercial
properties outside
Singapore.
Taxable
Supply?
N
Made by
taxable
person?
In course or
furtherance
of business?
Charge GST?
N
Y
N
(exempt)
Y
Y
(Commercial)
Y
Y
(7% - commercial)
(Exempt residential)
N
Y
Y
N
(out-of-scope)
24
2. Charging GST on Sales
Value of Supply Subject to GST
Value of Supply
Example
I give a 10% discount as a sales
promotion.
a) Trade discount
Net discounted
price
GST will be chargeable on the net
discounted price.
Note: This clause should be clearly
stated in the invoice.
25
2. Charging GST on Sales
Value of Supply
b) Transactions
with related
parties
Open Market
Value (OMV) of
goods
Example
Co. A (GST-registered), sold the
company’s furniture (market value
$5,000) to one of its directors at $800.
Value of supply = $5,000
GST = $5,000 x 7%
26
2. Charging GST on Sales
Absorbing GST
• To maintain competitiveness or as a form of goodwill, you
may choose to ‘absorb’ the GST payable by your customer
• The sum of money received from your customer will be
treated as inclusive of GST
• The GST to be accounted for is based on the tax fraction of
7/107 of the consideration received
Example: You sell a good at $100. If you choose to absorb
the GST, $100 is treated as inclusive of GST.
Value of Supply = $100 X 100/107 = $93.46
GST = $100 X 7/107 = $6.54
27
2. Charging GST on Sales
Accounting for GST
In general, you should account for GST at the earlier
of the following events:
• Invoice issued; or
• Payment received
For more information, you may refer to the e-Tax Guide
“GST: Time of Supply Rules”.
Note: Prior to 1 January 2011, the general time of supply rule
is the earliest of the following events:
1.Goods removed/made available or Services performed;
(“Basic Tax Point”)
2.Tax invoice issued (subject to 14-day rule); or
3.Payment received
BASIC TAX POINT
& 14-DAY RULE
NOW REMOVED
28
APPLICATION EXERCISE
Total value of goods sold = $11,000
Goods removed
(Value = $11,000)
Invoiced for
$11,000 and
received partpayment of
$5,000
Received
remaining
payment of
$6,000
01/01/12
31/01/12
01/02/12
Account for GST on: 31/01/12 (on $11,000)
29
2. Charging GST on Sales
Bad Debt Relief Claim
A bad debt situation occurs when money owed cannot be recovered. Bad debt relief
claim can be made on output tax that was previously accounted for and paid to
IRAS if you meet the conditions below:
1
2
Conditions
I have supplied goods or services for a consideration in money
and have accounted for and paid GST on the supply.
I have written off the whole or any part of the consideration for the supply
as a bad debt in my accounts.
3
A period of 12 months beginning with the date of supply has elapsed or the
debtor has become insolvent before the period of 12 months has elapsed.
4
I have taken reasonable steps to recover the debts.
Please complete the "Self-review of Eligibility to Claim Bad Debt Relief" form
(www.iras.gov.sg> Quick links> Forms>GST) before making the claim in your
current GST return. Do not submit the form to IRAS unless requested.
3. Accounting for GST on Other
Transactions
 Giving Goods and Services for Free
 Fringe Benefits to Staff
 Recovery of Expenses
 Sale of Business/Capital Assets
 Trade-in Transaction
Relevant e-Tax Guides:
“GST: General Guide for Businesses”
“Fringe Benefit”
“Use of Business Premises By Third Party for Free”
“GST: Guide on Reimbursement and Disbursement of Expenses”
30
3. Accounting for GST on Other
Transactions
Giving Goods and Services for Free
Giving Services for Free
•
No output tax needs to be accounted for as there is no supply
Giving Goods for Free (i.e. Free Gifts)
Prior to 1 Oct 2012
•
•
Deemed as supply of goods
Output tax to be accounted for based on the OMV of goods in
the following situations:
o GST was incurred on purchase of goods;
o Cost of gift > $200; or
o Cost of gift ≤ $200, but 3 or more gifts were given to the
same person within 3 months
From 1 Oct 2012
•
•
You only need to account for output tax if the cost of each gift
exceeds $200; and
If input tax on those goods has been allowed to you.
31
3. Accounting for GST on Other
Transactions
Fringe Benefits to Staff
Prior to 1 Oct 2012
•
Goods and services given free to all employees
•
Output tax to be accounted for on goods given free except in the
following situations:
1.
Cost of gift ≤ $200 and it does not form a series of 3 or more gifts
(regardless of value) given to the same person within 3 months;
2.
It is a free supply of food or accommodation
•
Output tax to be accounted for if GST was incurred on the purchase
With effect from 1 Oct 2012
•
Output tax to be accounted for on goods given free except in the
following situations:
1. A free supply of food or accommodation;
2. Gifts of value not more than $200 each; or
3. Gifts for which no credit for input tax has been allowed on its
purchase.
32
3. Accounting for GST on Other
Transactions
33
Recovery of Expenses
Prior to 31 May 2013
•
A recovery of expense is considered as a separate supply for GST purposes
(i.e. a reimbursement) and hence, subject to GST, as long as it does not
meet the following conditions for disbursements:
Conditions for disbursements
•
The other party is responsible for paying the supplier;
•
The other party knows that the goods or services would be provided by that
supplier;
•
The other party authorised you to make the payment on his behalf;
•
The other party is the recipient of the goods or services;
•
The payment is separately itemised when you invoice the other party;
•
You recover only the exact amount paid to the supplier; and
•
The goods or services paid for are clearly additional to the supplies you
make to the other party.
3. Accounting for GST on Other
Transactions
34
Recovery of Expenses
With effect from 31 May 2013
•
GST treatment for any recovery of expenses will be as follows:
If you incur the expenses as a
principal
The recovery
a reimbursement
of expenses is
GST
treatment
The recovery of the expenses from
another party may amount to a
supply and may be subject to GST
or exempt from GST, as the case
may be.
You are entitled to claim input tax
incurred on goods or services
Input tax claim procured by you if the subsequent
recovery of such expenses
constitute a taxable supply.
If you pay the expenses as
an agent
a disbursement
The recovery of expenses does
not constitute a supply and
hence will not be subject to
GST.
You are not entitled to any input
tax claim since the goods or
services are not supplied to you
but to your principal.
3. Accounting for GST on Other
Transactions
Sale of Business/Capital Assets
• GST-registered businesses must account for GST on
all taxable supplies made
• GST is chargeable on the sale of business/capital
asset though it is not considered the main business
activity
• For example, sale of office equipment, factory or old
furniture is subject to GST
35
3. Accounting for GST on Other
Transactions
Trade-in Transaction
•
•
•
Treated as 2 separate supplies for GST purpose
GST must be accounted for on the value of the 2
separate supplies
Incorrect to account for GST on the net difference
only
36
3. Accounting for GST on Other
Transactions
A Year End Sale Not to be
Missed!!!
If both buyer and supplier are GSTregistered and buyer traded-in an old
photocopier for a new photocopier:
Photocopiers are going at an
unbeatable price of $650 only!!
1) Buyer needs to issue a tax invoice to
supplier for $200 x prevailing GST rate.
Even more incredible news!!!
Trade in your old photocopier for a
BRAND NEW photocopier for only
$450!!
Unbelievable but true!! So come on
down to our stores now !!!
2) Supplier needs to issue a tax invoice to
buyer for $650 x prevailing GST rate.
If buyer is GST-registered but supplier
is not:
1) Buyer needs to issue tax invoice to
supplier for $200 x prevailing GST rate.
2) Supplier cannot charge GST on $650.
37
4. Claiming GST on Business
Purchases and Imports
 Conditions for Claiming Input Tax
 Disallowed Expenses
 Claiming Input Tax
 Claiming Input Tax on Purchases Paid in Foreign Currency
 Situations where Input Tax Claims are Disallowed
 Claiming Pre-registration Input Tax
 Repayment of Input Tax
Relevant e-Tax Guides:
“GST: General Guide For Businesses”
“Exchange Rates for GST Purposes”
“GST Guide on Imports”
38
4. Claiming GST on Business
Purchases and Imports
Conditions for Claiming Input Tax
You can claim GST incurred on your purchases as input tax if:
•
You are GST-registered;
•
The goods or services have been supplied to you or the goods have
been imported by you;
•
The goods or services are used or to be used for the purpose of your
business;
•
The input tax is directly attributable to taxable supplies or out-of-scope
supplies which would be taxable if made in Singapore;
•
The input tax claims are supported by tax invoices/ simplified tax
invoices addressed to you. For imports, the claims should be
supported by import permits showing you as the importer of the goods;
and
•
The input tax claims are not disallowed expenses under Regulation 26
and 27 of the GST (General) Regulations
39
4. Claiming GST on Business
Purchases and Imports
Disallowed Expenses
You are not allowed to claim input tax incurred on the following
expenses:
a)Club subscription fees
b)Medical and accident insurance premiums*
c)Medical expenses*
d)Benefits provided to family members/relatives of your staff
e)Cost and running expenses of motor cars
f)Any transaction involving betting, sweepstakes, lotteries, fruit
machines or games of chance
*Except those obligatory under the Work Injury Compensation Act or under
any collective agreement within the meaning of the Industrial Relations Act.
40
4. Claiming GST on Business
Purchases and Imports
Claiming Input Tax
• Tax invoices and import permits are the primary
documents for input tax claim and must be maintained to
support the claim
• Other relevant documents like payment evidence, invoice
from overseas supplier etc. must also be maintained
• Import permits should reflect your company as the
importer of the goods
• Input tax to be claimed in the accounting period
corresponding to the date shown in the tax invoice and
import permit
41
4. Claiming GST on Business
Purchases and Imports
Claiming Input Tax on Purchases Paid in
Foreign Currency
• For invoicing in foreign currency, your supplier must convert the
following items in the tax invoice into Singapore dollars using an
approved exchange rate for GST purposes:
- Total amount payable excluding GST;
- Total GST payable; and
- Total amount payable including GST
• You should claim the GST incurred based on the Singapore dollar
amount shown on the tax invoice
42
4. Claiming GST on Business
Purchases and Imports
43
Situations where Input Tax Claims are Disallowed
Case 1
No valid
supporting
document
• Tax invoice issued in Co X’s name
• The purchases were for Co Y’s use
• Co Y claimed input tax based on this tax invoice
 Co Y’s input tax claims will be disallowed
Case 2
Private
Expenditure
• Mr. X (GST-registered sole-proprietor) holds tax
invoices issued to him
• The GST was incurred for the purchase for a
piano used at home
• Expenditure is of private nature
 Mr. X's input tax claims will be disallowed
44
APPLICATION EXERCISE
No
Scenarios
Yes or No
1
My company owns a motorcar for business use.
Can I claim for the purchase, petrol and parking
charges?
No
2
My company purchased goods from overseas and
will import the goods into Singapore. My forwarder
has declared my related company as the importer.
Can my related company or my company claim the
GST on import?
No
3
I allow my staff to claim for their handphone bills.
The handphone bill is in my staff’s name. Can I
claim the GST?
Yes
(For business
purposes only)
4. Claiming GST on Business
Purchases and Imports
45
Claiming Pre-registration Input Tax
For purchases made before your GST registration, you can claim the GST
incurred if all the following conditions are satisfied:
GOODS
SERVICES
1. Goods are purchased or imported
in the course of business for
making taxable supplies.
1. Services are purchased for and supplied
in the course of business for the making
taxable supplies.
2. Goods are not consumed or
supplied before date of GST
registration.
2. Services are not related to goods/services
already supplied or consumed before
date of GST registration.
3. A stock account is maintained with
these details - date of purchase ,
quantities purchased etc.
3. Services are not supplied more than 6
months before date of GST registration.
4. Record is maintained with these details description of services; date of purchase;
and date of disposal (if any).
4. Claiming GST on Business
Purchases and Imports
Claiming Pre-registration Input Tax
How to claim?
1) Download and complete the “Self-Review for Eligibility to Claim
Pre-Registration Input Tax” form (www.iras.gov.sg > Quick links
> Forms > GST)
2) Do not submit the form to IRAS unless requested.
3) Claim pre-registration input tax only in your first GST F5 return.
If the GST F5 return has been submitted, to request for GST F7
to amend the GST F5 submitted.
46
47
APPLICATION EXERCISE
GST registration date : 01/01/2013
GST Incurred on Goods:
Invoice Date
Description
i)
Purchase of stocks
which were sold on
15/1/13
$1,000
Yes
Utilities charges
$300
No
iii) 15/12/12
Office rental
$2,500
No
iv) 01/12/12
Goods imported and
sold on 31/12/12
$900
No
ii)
01/11/12
30/11/12
Amount
Claimable?
48
APPLICATION EXERCISE
GST registration date : 01/01/2013
GST Incurred on Services:
Invoice Date
Description
Amount
Claimable?
v) 01/05/12
Management fee
$1,000
No
vi) 30/11/12
Consultancy fee
$2,000
Yes
vii) 01/11/12
Commission paid
for goods sold on
01/11/12
$500
No
4. Claiming GST on Business
Purchases and Imports
Repayment of Input Tax
• If you have not paid your supplier within 12 months from
the due date of payment but have claimed the GST as
input tax in your GST F5 return, you are required to
repay the GST claimed
• Do so in the first GST F5 after the 12-month period by:
1. Reducing the value of your taxable purchases (Box 5,
“Value of taxable purchases”); and
2. Reducing the value of the input tax claim (Box 7,
“Input tax and refunds claimed”).
49
5. Price Display, Invoicing and
Record-keeping
 Displaying Prices
 Invoicing Customers
 Keeping Records
Relevant e-Tax Guides:
“GST: General Guide For Businesses”
“Exchange Rates for GST Purposes”
“Basic Record Keeping Guide for GST-registered Businesses”
“Keeping Machine-sensible Records and Electronic Invoicing”
“Keeping of Records in Imaging Systems”
50
5. Price Display, Invoicing and
Record-keeping
Displaying Prices
• Any price displays (e.g. price tags, price lists, publicity
brochures, advertisements) or quotations in respect of goods or
services made to the public, be it written or verbal, must be
shown inclusive of GST
• Failure to comply is an offence
Exception:
- Hotel and Food & Beverage (F&B) industries where goods
and services are subject to service charge may display GST
exclusive price
- A statement informing customers that prices displayed are
subject to GST and service charge must be prominently
shown
51
52
APPLICATION EXERCISE
Displaying prices: Which are acceptable?
Price Displayed as
Acceptable?
$107
Yes
$107 (inclusive of GST)
Yes
$100 +
No
$100 + GST
No
$100 + 7% GST
No
$100 + $7 GST
No
5. Price Display, Invoicing and
Record-keeping
Invoicing Customers
Issuing tax invoices
Importance of
tax invoice
• Primary supporting document for input
tax claims
When to issue
a tax invoice?
• Must be issued if making a standardrated supply to a taxable person
• Within 30 days from the receipt of
payment
When not to
issue a tax
invoice?
No need to issue tax invoices for:
• zero-rated supplies
• exempt supplies
• deemed supplies
53
5. Price Display, Invoicing and
Record-keeping
Issuing tax
invoice in
foreign
currency
For tax invoice issued in foreign currency, the
following items on the tax invoice must be
converted into Singapore dollars:
• total amount payable excluding GST;
• total GST amount; and
• total amount payable including GST
The conversion must be based on an
approved exchange rate.
54
5. Price Display, Invoicing and
Record-keeping
55
Contents of a tax invoice
TAX INVOICE
6
1.
2.
3.
Gallery Photo Supplier
888 Jalan Ang Teng
Singapore 560009
5
GST Reg No: M2-1234567-K
(Customer’s Name)
3
(Customer's Address)
(Customer's Address)
1
Type of Supply: Cash / Credit Sale
S/No
Description
Date:1/7/2012
Invoice No: F012345
6.
7.
4
Qty Unit Price
($)
Total
Discount
Total
($)
($)
($)
1
Yashica MG2
10
90
900
2
Pentax Z-1 Body 20
1,000
20,000
Total
7
Add GST @ 7%
Amount Due:
2
4.
5.
45
855.00
8.
1,000 19,000.00
19,855.00
9.
1,389.85
8
21,244.85
Thank you. We look forward to being of service to you again.
10.
An identifying number
Invoice date
Customer’s name (or business
name) and address
Description of goods and services
Supplier’s name, address and GST
registration number
The words “tax invoice”
Total amount payable excluding
GST, total GST amount shown
separately
Total amount payable, including
GST
Breakdown of standard-rated,
zero-rated, exempt or other supply
if any and the gross amount
payable in respect of each supply
Convert into SGD if billing is in
foreign currency
5. Price Display, Invoicing and
Record-keeping
Issuing simplified tax invoices
When to Issue?
•
Amount payable including tax ≤ $1,000
•
Only for standard-rated supplies
What must be shown on a simplified tax invoice?
•
Supplier’s name, address and GST registration number
•
An identifying number (e.g. invoice number)
•
Invoice date
•
Description of the goods or services
•
Total amount payable including GST
•
The words “Price Payable inclusive of GST”
56
5. Price Display, Invoicing and
Record-keeping
Keeping Records
Income, purchase and business expense records
• Tax invoices/simplified tax invoices/receipts
issued/received
• Business contract and agreement
• Credit notes and debit notes
• Import and export documents (e.g. import and export
permit, bill of lading, air waybill)
• Payment evidence (e.g. bank statement)
• Tourist refund claim forms etc.
57
5. Price Display, Invoicing and
Record-keeping
Other records to support GST declarations
•
Source documents of all other business transactions
which affect the output and input tax reported in the
GST return
•
Examples include:
- Usage of business assets for private purposes
- Disposal of business assets
- Removal of goods from customs-licensed warehouse
58
5. Price Display, Invoicing and
Record-keeping
Statements and accounting schedules
•
The following should be maintained for the tracking and summary of
records:
- General Ledgers/ Debtors and Creditors Ledgers
- Purchase Orders and Delivery Notes
- Purchase and Sales Books/ Cash Books and other account books
- Records of daily takings
- Stock records
- Bank Statements and Bank-in Slips
- Relevant Business Correspondences
- GST Accounts
- Financial Statements
- Statement of accounts such as Balance sheet and Profit and Loss
Statements etc.
59
5. Price Display, Invoicing and
Record-keeping
60
Sales and purchase listings
• Recommended format as follows:
Sales Listing
Invoice
date
Invoice
number
Name of
customer
Description
of supply
Invoice
amount
excluding
GST ($)
Supplier’s
GST
registration
number
Description
of purchase
GST ($)
(if applicable)
Destination of
goods
(if applicable)
Purchases Listing
Invoice
date
Invoice
number
Name of
supplier
Invoice amount
excluding GST
($)
GST ($)
5. Price Display, Invoicing and
Record-keeping
How long do I keep records and accounts?
Accounting records pertaining to prescribed accounting
period ending:
•
On or after 1 January 2007 – to keep for at least 5 years
•
Before 1 January 2007 – to keep for at least 7 years
61
62
BREAK
6. e-Filing GST Returns and
Correcting Mistakes
 Overview of e-Filing
 Completing GST F5
 Important Things to Note on e-Filing
 Correcting Mistakes in GST Return
Relevant e-Tax Guide/ User Guide:
“How Do I Prepare My GST Returns?”
“GST e-Filing User Guide”
“GST: A Guide on Exports”
63
6. e-Filing GST Returns and
Correcting Mistakes
64
Overview of e-Filing
Step 1
Step 2
Authorise Staff/Third Party to act
for your organisation’s GST
matters online
• You need your organisation’s e- via e-Services Authorisation
System (EASY)
Services Access Code to log in
• This step is required only if you are http://mytax.iras.gov.sg/easy
e-Filing GST return for the first time or
if you need to edit an earlier
authorisation
Retrieve and Complete GST F5
via myTax Portal
http://mytax.iras.gov.sg
For detailed instructions, you may download the “GST e-Filing User Guide”
at www.iras.gov.sg> Quick links> e-Services> GST.
6. e-Filing GST Returns and
Correcting Mistakes
65
Completing GST F5
Box 1: Total value of standard-rated supplies
The amount to report in Box 1 is the value of supplies which are subject to GST.
This value should exclude the GST amount.
Example: If you sell goods for $100 with $7 of GST, you should include $100 in Box 1.
What to
include
• Supplies of goods made in the course of your business
E.g. Inter-company sale of goods (if not under Group/ Divisional
Registration), lease of machinery
• Supplies of services made in the course of your business
• Sale of business assets
• Deemed supplies
E.g. Gifts > $200 or forms a series of gifts OR Business assets put
to non-business use
What to
deduct
• Reduction in the value of standard-rated supplies for which a credit
note has been issued or a debit note has been received
6. e-Filing GST Returns and
Correcting Mistakes
66
Box 2: Total value of zero-rated supplies
What to
include
• Supplies of goods which are exported
• Supplies of international services as listed in
section 21(3) of the GST Act
What to
deduct
• Reduction in the value of zero-rated supplies
for which a credit note has been issued or a
debit note has been received
Box 3: Total value of exempt supplies
What to
include
• Sales and leases of residential properties
• Supplies of financial services under the Fourth Schedule to the GST Act
E.g. Interest from local banks, sale of equity, absolute value (i.e. to
ignore any negative sign) of net realised exchange gain/loss for each
prescribed accounting period
• Supply of Investment Precious Metals (IPM) (with effect from 1 Oct
2012)
6. e-Filing GST Returns and
Correcting Mistakes
Box 3: Total value of exempt supplies (continue)
Illustration: For the quarterly return ending Dec 2012
Month
Oct
Nov
Dec
Exchange gain/(loss)
(150)
100
(200)
•
The net realised foreign exchange loss for the quarter is $250
•
Interest received from fixed deposit is $400
•
You need to report $250 + $400 = $650 in Box 3
Box 4: Total value of Box (1) + Box (2) + Box (3)
The value in this box will be automatically computed after you have filled in
the amounts in Box 1, Box 2 and Box 3.
67
6. e-Filing GST Returns and
Correcting Mistakes
Box 5: Total value of taxable purchases
The amount to report in Box 5 is the value of purchases and imports where the GST
incurred can be claimed, and zero-rated purchases. This value should exclude the
GST amount.
Example: If you buy or import goods for $100 with $7 of GST, you should include $100
in Box 5.
What to
include
• Standard-rated purchases
• Imports
• Zero-rated purchases from GST-registered suppliers (e.g. purchase of air
tickets, international freight charges, international call charges)
• Business purchases made before your date of GST registration which
satisfy pre-registration input tax claim conditions (in first GST F5 only)
What to
deduct
• Reduction in the value of taxable purchases for which a credit note has
been received or a debit note has been issued
• Value of taxable purchases corresponding to repayment of input tax
What to
exclude
• Wages and salaries
• Expenses where input tax is specifically disallowed
68
6. e-Filing GST Returns and
Correcting Mistakes
Box 6: Output tax due
In general, the amount to report in Box 6 is the GST charged on your standardrated supplies.
Example: If you sell goods for $100 with $7 of GST, you should include the $7 of
GST in Box 6.
What to
include
• GST charged on the items included in Box 1
• GST on debts that are recovered after you have claimed for your bad
debt relief
• Claim of a refund made to a tourist if it was previously allowed to you and
you are no longer entitled to it
What to
deduct
• Reduction in GST to be accounted for where a credit note has been
issued or a debit note received
69
6. e-Filing GST Returns and
Correcting Mistakes
Box 7: Input tax and refunds claimed
In general, the amount to report in Box 7 is the GST incurred on your business
purchases, and other GST refunds to claim.
Example: If you buy or import goods for $100 with $7 of GST, you should include $7 in
Box 7.
What to
include
• GST incurred on the standard-rated purchases included in Box 5
• GST incurred on imports included in Box 5
• Tourist refunds made to your customers (Applicable to businesses that
operate the Tourist Refund Scheme only)
• Bad debt relief claim in which all the bad debt relief claim conditions can
be satisfied
• Input tax claim for business purchases made before your date of GST
registration which satisfy pre-registration input tax claim conditions (in first
GST F5 only)
What to
deduct
• Reduction in GST to be claimed where a credit note has been received or
a debit note issued
• Repayment of input tax claimed from IRAS but not paid to your supplier
70
6. e-Filing GST Returns and
Correcting Mistakes
71
Box 8: Net GST to be paid to/claimed from IRAS
The value in this box will be automatically computed after you have filled in the
amounts in Box 6 and Box 7.
Box 9: Total value of goods imported under this scheme
This box is only applicable to businesses under the:
• Major Exporter Scheme; or
• Approved Third Party Logistics Company Scheme; or
• Other Approved Schemes
Box 10: Did you claim for GST you had refunded to tourists?
If you have claimed any GST refunds made to tourist under the Tourist Refund
Scheme in Box 7 (Input tax and refunds claimed), please indicate ‘Yes’ and state the
amount claimed in this box.
Box 11: Did you make any bad debt relief claims?
If you have made bad debt relief claims in Box 7 (Input tax and refunds claimed),
please indicate ‘Yes’ and state the amount that you have claimed in this box.
6. e-Filing GST Returns and
Correcting Mistakes
Box 12: Did you make any pre-registration claims?
This box is applicable to your first GST return only and will not be available in
your subsequent GST returns. If you have made pre-registration input tax
claims in Box 7 (Input tax and refunds claimed), please indicate ‘Yes’ and state
the amount that you have claimed in this box.
Box 13: Revenue
In general, ‘revenue’ refers to income derived from your main income
sources such as from the provision of services, sale of goods and any other
operating income (i.e. gross sales/ gross income/ turnover). This value should
be extracted from the revenue items (e.g. sales) in your profit & loss
accounts, whether they have been audited or not.
As this value is based on your accounting treatment, it may be different from
the amount declared in Box 4 which is your total supplies based on GST
requirements.
72
6. e-Filing GST Returns and
Correcting Mistakes
Important Things to Note on e-Filing
Due Dates for Submission of GST Return and GST Payment
• Filing and payment due date is 1 month after the end of each
prescribed accounting period (E.g. due date for GST F5 return
covering 1 Jan 12 - 31 Mar 12 is 30 Apr 12)
• Penalties will be imposed for late submission of return and payment
of tax
• Payment can be made via GIRO (deduction will be made on the 15th
day of the following month after the filing due date), cheque or AXS.
For details, refer to www.iras.gov.sg > Quick links > Payments >
GST
• If net GST amount to be paid or claim is < $5, no payment or refund
will be made
73
6. e-Filing GST Returns and
Correcting Mistakes
Important Things to Note on e-Filing
Things to look out for when completing the GST Return
• To drop off cents for Boxes 1 to 5 & 9
• Declare figures in S$, not in foreign currencies
• All boxes must be completed
• If no business is done, a ‘Nil’ return is still required
74
75
APPLICATION EXERCISE
ABC company has the following business transactions for one accounting
period:
Transaction
Value
1) Imports
$20,000
Fill in Box
5
2) Local sale
$50,000
1
3) Local sale of fixed asset
$5,500.50
4) Local purchase
$8,100.40
5) Export sales*
$50,070.80
1
5
2
*Please note that export sales qualify for zero-rating only if all the relevant export documents
can be maintained within 60 days from the time of supply. You can refer to the e-Tax Guide
“GST: A Guide on Exports” for the relevant documents to be maintained.
76
APPLICATION EXERCISE
ABC company has the following business transactions for one accounting
period:
Transaction
Value
Fill in Box
1) Imports
$20,000
5
2) Local sale
$50,000
1
3) Local sale of fixed asset
$5,500.50
4) Local purchase
$8,100.40
5) Export sales*
$50,070.80
1
5
2
Box 1: Total standard-rated supplies = (2) + (3)
= $50,000 + $5,500.50
= $55,500.50
Box 2: Total zero-rated supplies = $50,070.80
77
APPLICATION EXERCISE
ABC company has the following business transactions for one accounting
period:
Transaction
Value
Fill in Box
1) Imports
$20,000
5
2) Local sale
$50,000
1
3) Local sale of fixed asset
$5,500.50
4) Local purchase
$8,100.40
5) Export sales*
$50,070.80
1
5
2
Box 5: Total value of taxable purchases = (1) + (4)
= $20,000 + $8,100.40
= $28,100.40
78
APPLICATION EXERCISE
What figures to fill for Box 6 (output tax) and Box 7 (input tax) ?
Transaction
Value
Fill in
Box
GST
Value
Box 6 or
7?
1) Imports
$20,000
5
$1,400
2) Local sale
$50,000
1
$3,500
3) Local sale of fixed asset
$5,500.50
1
$385.04
7
6
6
4) Local purchase
$8,100.40
5
$567.03
5) Export sales
$50,070.80
2
$0
Box 6: Output Tax Due = (2) + (3)
= $3,500 + $385.04
= $3,885.04
7
NA
79
APPLICATION EXERCISE
What figures to fill for Box 6 (output tax) and Box 7 (input tax) ?
Transaction
Value
Fill in
Box
GST
Value
Box 6 or
7?
1) Imports
$20,000
5
$1,400
2) Local sale
$50,000
1
$3,500
3) Local sale of fixed asset
$5,500.50
1
$385.04
7
6
6
4) Local purchase
$8,100.40
5
$567.03
5) Export sales
$50,070.80
2
$0
Box 7: Input Tax and Refunds Claimed = (1) + (4)
= $1,400 + $567.03
= $1,967.03
7
NA
80
APPLICATION EXERCISE
55,500
50,070
0
105,570
28,100
3,885.04
1,967.03
1,918.01
6. e-Filing GST Returns and
Correcting Mistakes
Correcting Mistakes in GST Return
• Mistakes made in your GST F5/F7/F8 return submitted can be
corrected by filing a GST F7 “Disclosure of errors on GST return”
• To fill in the total revised figures inclusive of error adjustments
(i.e. treat the GST F7 as a new GST return for the accounting
period)
• GST F7 filed will supersede the F5/F7/F8 that was submitted
previously for the same accounting period
81
6. e-Filing GST Returns and
Correcting Mistakes
Correcting Mistakes in GST Return
• GST F7 can be requested and submitted electronically via
myTax Portal.
• For detailed instructions on requesting for GST F7, you may
refer
to
the
“GST
e-Filing
User
Guide”.
GST > For GST-registered businesses > Complete & File GST return >
Correct errors made in GST return (request for GST F7).
• As a concession, you may correct the errors in your next GST
F5 return, subject to certain conditions as shown in the following
flowchart.
82
6. e-Filing GST Returns and
Correcting Mistakes
83
ERRORS
NO
Do the errors
involve GST?
YES
NO
Is the net GST error* for
all affected accounting
period(s) > $1,500?
YES
File F7
Is the sum of nonGST errors** for
each prescribed
accounting period
> 5% of total
supplies?
YES
NO
Include the errors
in the next GST
F5/F8 return
*GST error refers to a mistake
made to the value declared in
Box 6 and/or Box 7 of your
submitted GST return.
**Non-GST errors refer to all
other mistakes made that are not
GST errors.
84
APPLICATION EXERCISE
Scenario
Errors
Net GST error
Adjustments
1. Errors involve
GST amount only
(value of supplies
and purchases
are correct)
Qtr 1: Under-declared
output GST by $300
+$300 - $200 = +$100
Net GST error < $1,500;
Non-GST error < 5% of
total supplies.
Correct mistake in next
GST F5/F8 return.
1. Increase Box
6 by $300 &
2. Increase Box
7 by $200
in next GST
F5/F8 return.
2. Errors do not
involve GST
amount
(GST values are
correct)
Qtr 1: Standard-rated
$200 + $10,000 + $500
supplies over-declared by = $10,700
$200
$10,700 / $105,570 * 100
= 10.1%
Qtr 1: Zero-rated supplies
Non-GST errors > 5% of
under-declared by
total supplies.
$10,000
Need to file GST F7.
Qtr 1: Taxable purchases
under-declared by $500
You will need to
revise all the
figures (as if you
are filing for the
1st time) in the
GST F7 for Qtr1.
Qtr 1: Under-declared
input GST by $200
7. Penalties and Recovery
Actions
 Late Registration
 Non/Late Submission of GST Return
 Non/Late Payment of Tax
 Submission of Incorrect GST Return
 Failure to Keep Proper Records
Relevant e-Tax Guides:
“Do I Need to Register?”
“How Do I Prepare My GST Return”
“Basic Record Keeping Guide for GST-registered Businesses”
“Keeping of Records in Imaging Systems”
“Keeping Machine-sensible Records and Electronic Invoicing”
85
7. Penalties and Recovery
Actions
Late Registration
If a business fails to apply for GST registration within 30 days of the
date its registration liability arises, the Comptroller has the power to:
• Back-date the GST-registration
- Business must account for GST on standard-rated supplies
made from their effective date of GST registration. This is
regardless of whether GST can be recovered from its customers
• Impose penalties
- 5% late payment penalty will be imposed on the tax that should
have been paid earlier
• On conviction, the following shall be imposed:
- 10% penalty on tax due; and
- Fine not exceeding $10,000
86
7. Penalties and Recovery
Actions
Non/Late Submission of GST Return
If a business fails to submit GST return by the due date, the
Comptroller can:
• Impose late submission penalty
- $200 late submission penalty for every completed month
that GST F5/F8 remains outstanding (not exceeding
$10,000 in penalty for each GST F5/F8)
• Raise estimated tax assessment and impose late payment
penalty (LPP)
- Tax unpaid 60 days after the imposition of 5% LPP may be
subject to an additional 2% penalty for each completed
month (not exceeding 50% of tax outstanding)
87
7. Penalties and Recovery
Actions
Non/Late Submission of GST Return
• Raise estimated tax assessment and impose late payment penalty
(LPP)
- The estimated tax assessment and LPP will be adjusted upon
receipt and finalisation of GST F5/F8.
• On conviction, the following will be imposed:
- Person responsible for the submission liable to a fine not
exceeding $5,000 for each offence, and
- Imprisonment not exceeding 6 months for non-payment
88
7. Penalties and Recovery
Actions
89
Non/Late Payment of Tax
If a business fails to make GST payment by due date, the Comptroller
can:
• Impose late payment penalty and issue a demand note
- 5% penalty on tax payable; and
- Tax unpaid 60 days after the imposition of 5% LPP may be
subject to an additional 2% penalty for each completed month
(not exceeding 50% of tax outstanding)
• Appoint agent (e.g. banks, tenants) for payment of tax
• Stop individual from leaving the country
• Take legal action
7. Penalties and Recovery
Actions
Submission of Incorrect GST Return
If a business submits an incorrect GST return, the
Comptroller can:
• Raise additional tax assessment
- IRAS conducts random audits on GST-registered
businesses
- Additional tax assessment will be raised to recover
the taxes under-accounted/over-claimed
• On conviction, the following shall be imposed:
- Penalty up to 2 times the amount of tax underaccounted/over-claimed; and
- Fine up to $5,000 and/or imprisonment up to 3 years
90
7. Penalties and Recovery
Actions
Failure to Keep Proper Records
• On conviction of failure to keep proper records, the
following shall be imposed:
- Fine not exceeding $5,000; and/or
- Imprisonment not exceeding 6 months
• Repeated offence: Business will face fine not exceeding
$10,000 and/or imprisonment not exceeding 3 years
91
92
APPLICATION EXERCISE
Scenario
Late
submission?
Penalty?
Late
payment?
Penalty?
a) F5 for 01 Oct 12 –
31 Dec 12 e-filed on
20 Jan 13.
Sufficient funds
were maintained for
a successful GIRO
deduction on
15 Feb 13.
No
NA
No
NA
93
APPLICATION EXERCISE
Scenarios
b) F5 for 01 Oct 12 –
31 Dec 12 e-filed on
28 Jan 13 with net tax
payable of $1,000
which was paid to
IRAS on 01 Apr 13.
Late
Submission?
No
Penalty?
NA
Late
Payment?
Penalty?
Yes
5% x $1,000
+
2% x $1,000
+
2% x $1,000
5% x $1,000
c) F5 for 01 Oct 12 –
31 Dec 12 e-filed on
15 Mar 13 with net tax
payable of $1,000
which was paid to
IRAS on 15 Mar 13.
Yes
$200
Yes
Previous
penalty on
assessment
raised would be
adjusted
accordingly
94
8. Tips on Compliance
 How to Avoid Late Submission Penalty
 How to Avoid Late Payment Penalty
 How to Ensure Accurate GST Reporting – The
Four Building Blocks
 GST Assisted Self-help Kit (ASK)
Relevant e-Tax Guides:
“GST: General Guide for Businesses”
“How Do I Prepare My GST Return”
“Basic Record Keeping Guide for GST-registered Businesses”
“Keeping of Records in Imaging Systems”
“Keeping Machine-sensible Records and Electronic Invoicing”
“IRAS Voluntary Disclosure Programme”
95
8. Tips on Compliance
How to Avoid Late Submission Penalty
• Ensure necessary resources are available for prompt filing
of GST F5/F8 returns
• Ensure the person authorised for e-filing is able to log-in to
myTax Portal much earlier than the due date of filing
• Ensure that the Acknowledgement Page is generated after
each submission of GST F5/F7/F8 return online
96
8. Tips on Compliance
How to Avoid Late Payment Penalty
• For payment through GIRO, ensure you have sufficient
funds in your GIRO bank account by the 15th of the month
when payment is to be deducted
• Follow payment instructions on the Acknowledgement
page generated with each successful submission of GST
return
• Submit your GST returns and pay the tax declared by the
due date. If you have not submitted the GST F5/F8 return,
pay the tax assessed and submit the return immediately so
that tax assessed can be adjusted
97
8. Tips on Compliance
How to Ensure Accurate GST Reporting –
The 4 Building Blocks
1. People
• Know the e-Filing and GST payment procedures
• Have adequate GST knowledge
Authorised
staff doing the • Ensure that GST treatment is correctly applied to
transactions and clarify when unsure of GST treatment
GST reporting
• Keep abreast of GST developments by visiting IRAS’
website and attending relevant courses
• Directors/Shareholders to take interest in accuracy of
GST reporting
Management
• Engage qualified people for GST reporting or provide
adequate training to staff
• Ensure proper handover during staff turnover (e.g.
authorise the new staff at EASY to e-File GST returns)
98
8. Tips on Compliance
2. Systems
• Coded table to classify your sales (type of
supply) and purchases (whether claimable)
when they are recorded
Use of suitable
computerised
accounting system/
software
• In-built logic to detect duplicate records,
discrepancies in GST rate and GST value, etc
• Function to generate a GST report to assist you
in completing your GST returns
• Function to generate sales and purchases
listings in the format of an IRAS Audit File (IAF)
and/or softcopy sales and purchases listings in
Microsoft Excel file format
For a list of accounting software that can produce IAF, please refer to
www.iras.gov.sg > Businesses > IRAS Accounting Software Register.
99
8. Tips on Compliance
3. Record-keeping
To comply with the record-keeping requirements stated under
Section 5.
• Set up a good filing system
• Keep clear records with cross-references (e.g.
credit notes issued should make reference to
the original tax invoice)
Good record-keeping • Ensure all transactions are captured
accurately and in a timely manner in your
practices
accounting system
• Keep all IRAS’ correspondences (e.g. Approval
for GST registrations and schemes, updates
on GST changes, GST clarifications sought
from IRAS etc.)
100
8. Tips on Compliance
4. Internal Controls
• Claiming input tax only upon receipt of tax
invoice to avoid double claiming
Good internal
control
• Ability to track all creation, amendment and
approval of transactions
• GST return to undergo second level of review
before submission
• Regular reviews to assess the accuracy of
submitted GST returns
101
8. Tips on Compliance
GST Assisted Self-help Kit (ASK)
•
•
ASK is a self-assessment package designed to help you enhance your GST
compliance
You can learn more about ASK at www.iras.gov.sg > For GST-registered
Businesses > GST Initiatives to Facilitate Voluntary Compliance > GST Assisted
Self-help Kit (ASK)
GOOD GST COMPLIANCE
GST
Practices
PreFiling
Checklist
ASK
Annual
Review
SECTION 1
SECTION 2
SECTION 3
GST Practices list down
the essential requirements
and good practices that
you can include in the
internal processes of your
business.
Pre-Filing Checklist is a
set of questions and
answers for you to go
through before you file
your GST return, so that
you can avoid errors.
ASK Annual Review
guides you to do a selfreview of your GST
returns filed in the past
financial year(s).
102
8. Tips on Compliance
Voluntary disclosure of errors
attracts lower penalties!
For a start, you can go through
“Avoid Costly GST Errors”
enclosed in this seminar package and the
GST Assisted Self-help Kit
For more information, refer to www.iras.gov.sg > About IRAS >
Taxpayer Compliance > IRAS Voluntary Disclosure Program
9. Notifying of Changes to Business
and Cancelling GST Registration
 Notifying Changes to Business
 Cancelling GST Registration
Relevant e-Tax Guide:
“Do I Need to Register?”
“GST: General Guide for Businesses”
“Transfer of Business as a Going Concern”
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9. Notifying of Changes to Business
and Cancelling GST Registration
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Notifying Changes to Business
Changes to Business
Action Required
Change in business details
(E.g. business name, address
or GST GIRO bank account
number)
Write in (post/fax/email) with supporting
documents (e.g. ACRA Business Profile) to
inform IRAS within 30 days of change.
Cessation of business
• GST registration will not be automatically
cancelled upon cessation of business
• To apply for cancellation of GST
registration within 30 days of business
cessation by submitting form GST F9
(Application for Cancellation of GST)
9. Notifying of Changes to Business
and Cancelling GST Registration
Changes to Business
Change in business
constitution or ownership
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Action Required
Transferor
To apply for cancellation of GST registration
• Transfer of business from one within 30 days of the date of transfer by
person to another
submitting GST F9 if transferor ceases to make
(E.g. convert from soletaxable supplies after the transfer.
proprietorship to private limited
company)
Transferee
• Transferor: previous
• Assess if business is liable to be GSTbusiness constitution/owner
registered
• Transferee: new business
constitution/owner
• Submit GST F1 (Application for GST
Registration) and Documentation Checklist
within 30 days of the date of transfer should
taxable turnover exceed S$1 million
9. Notifying of Changes to Business
and Cancelling GST Registration
Cancelling GST Registration
• Other than cessation of business, you may cancel your GST
registration if your business turnover is below the compulsory
registration threshold
• To notify the Comptroller by submitting GST F9 (Application for
cancellation of GST)
• Once application is approved, you will be notified of the effective
date of de-registration and will be required to submit a GST F8
(Final GST return)
• To account for output tax if value of assets on hand including
stock, fixed assets and non-residential properties (for which input
tax has been allowed previously) exceeds $10,000
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10. Where To Get Help
-
IRAS website (www.iras.gov.sg)
-
Email enquiries (www.iras.gov.sg > Contact Info > Email Us)
-
Fax enquiries (6351 3553)
-
Letter enquiries
(The Comptroller of Goods and Services Tax
Inland Revenue Authority of Singapore
55 Newton Road
Revenue House
Singapore 307987)
-
GST helpline (1800 356 8633)
-
Counter service at Revenue House
(Monday to Friday only: From 8am to 5pm)
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10. Where To Get Help
“Ask IRAS”
e-Tax Guides
www.iras.gov.sg > GST
GST E-SERVICES
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24 Hours, 7 days a week
1.
View Return Status
Check the status (e.g. if GST return is successfully submitted to IRAS) of
GST F5, F7 and F8
2.
Update contact details and subscribe to Alert
View or update your contact information online, such as your GST mailing
address and to subscribe to GST alerts.
3.
View Correspondence/ Notices
Retrieval of Acknowledgement page
4.
View Account Summary/ Payments
View tax account details; Request statement of accounts; View payment plan
schedules; Make payment via internet banking; Request payment voucher to
make payment via other payment modes
5.
Apply for GST Registration/ Cancellation of GST Registration
6.
Apply for Declaration of Agents
Maintain list of authorised declaring agents for businesses approved under
Major Exporter Scheme (MES)/Third Party Logistics Company Scheme (3PL)
Log onto myTax portal @https://mytax.iras.gov.sg
for all these and more ...
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iSPRINT (Packaged Solutions)
With effect from 1 Apr 2012, all businesses (GST-registered and nonGST-registered) can apply to IDA for a grant under IDA’s iSPRINT
(Packaged Solutions) scheme to defray the costs of purchasing
accounting software that are listed on IRAS’ Accounting Software
Register.
Businesses can claim up to 50% of the qualifying costs for the purchase
of the first packaged solution (listed) under each solution category. For
more details on the list of packaged solutions, please refer to IDA
website.
Please note that businesses must obtain IDA's grant approval before
purchase can be made.
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iSPRINT (Packaged Solutions)
Who is eligible?
How Do I Qualify?
• You are a local SME with minimum 30% local shareholding and
• You do not already own/ use any other solutions that you are going
to adopt (i.e. accounting, payroll or POS solution) and
• Company's Group annual sales turnover not more than S$100
million or
• Company's Group employment size not more than 200 workers.
For more details on the scheme, please visit IDA at www.ida.gov.sg.
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GST Course by
Tax Academy of Singapore
Course Title : Executive Tax Programme Level I (GST)
Duration
: 3.5 days
Course fee : Refer to website
(*IRAS is offering up to 50% subsidy on all
Executive Tax Programmes. )
For more details, visit: www.taxacademy.com.sg or contact
Ms Toh Hui Bin Eunice at 6351 3061, eunicetoh@taxacademy.com.sg
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GST Workshop by
Tax Academy of Singapore
Workshop Title : FasTax Series – Getting GST Right
Duration
: 1 day
Workshop fee : Refer to website
For more details, visit: www.taxacademy.com.sg or contact
• Ms Jocelyn Chong at 6351 3040
• Ms Amuna Manyuni at 6351 3023
• Or email to: seminars@taxacademy.sg
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Answers to Application Exercises
Slide 21:
7%, exempt, 0%
Slide 48:
(v) No, (vi) Yes, (Vii) No
Slide 22:
N (out-of-scope), Y (0%), Y (7%)
Slide 52:
Yes, Yes, No, No, No, No
Slide 23:
N (exempt), Y (7% – commercial;
Exempt – residential), N (out-of-scope)
Slide 75:
1) 5, 2) 1, 3) 1, 4) 5, 5) 2
Slide 44:
1) No
2) No
3) Yes (For business purposes only)
Slide 47:
(i) Yes, (ii) No, (iii) No, (iv) No
Slide 78:
1) 7, 2) 6, 3) 6, 4) 7, 5) NA
Slide 92:
No, NA, No, NA
Slide 93:
No, NA, Yes
Yes, $200, Yes
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Join GIRO Now!
Why GIRO?
Convenient - GIRO is an electronic cashless mode of
payment & removes the hassle of writing cheques.
No more late payment - You will not miss the payment due
dates.
Enjoy interest-free instalments 1.For income tax ECI payments, companies can enjoy up to
10 monthly interest-free instalments.
2.For property tax, companies can enjoy up to 12 monthly
interest-free instalments, or opt for a one-time GIRO
deduction.
116
Join GIRO Now!
Why GIRO?
Enhance cash flow - Funds stay in your account longer
1. For Goods & Services Tax, GIRO deduction is on 15th of the
month, 15 days after the filing due date via a one-time deduction.
2. For Section 45 withholding tax, GIRO deduction is on 25th of the
month, 10 days after the filing due date via a one-time deduction.
Faster tax refund - You can receive tax refund faster as it will be
credited directly to your bank account. You do not have to wait for
a cheque to be posted to you.
Full control over GIRO with IRAS’ e-Services - You can view
your GIRO plan and tax account balance simply by logging into
myTaxportal.
117
Join GIRO Now!
How to sign up for GIRO?
Simply complete one form and sign up to pay by GIRO for all
your taxes.
The form is available on IRAS website:
http://www.iras.gov.sg>Quick Links>Forms>GIRO Application
Forms
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Master GIRO Application Form
Select the tax types
you wish to apply
for GIRO and the
type of payment
plan.
119
Company’s Income Tax Obligations
120
Company’s Income Tax Obligations
Seminars & Events).
121
Q&A