Registration and filing for necessary tax responsibilities are necessary for each company. These companies must ensure that they are prudent in attending to these. Here is how to register a GST company in Singapore.
What is the Goods and Services Tax?
The Goods and Services Tax, or GST, is an indirect tax imposed by the government on numerous goods and services. These products and services are mainly for domestic consumption and goods imported into the country.
Primarily, the consumers pay for the GST. Eventually, the business owners of such goods and services will remit these to the government
A company must register for GST if they have a taxable turnover of more than $1 million at the end of that year, in a retrospective view. Or, if the company is expected to gain that million in the next 12 months.
A GST-registered business will have a GST registration number upon completion.
What are the Benefits of Registering for GST?
If a business is GST-registered, it will have the following benefits:
A decrease in business operating costs subsequently decreases the prices of their goods and services.
The company can establish legitimacy and boost its reputation.
GST imposes a fair system as it taxes self-employed individuals on their consumption and not their earnings.
GST encourages regular saving and investment.
What are the disadvantages of Registering for GST?
On the other hand, GST-registered companies are not without disadvantages. Here are a few of the drawbacks of this tax system:
There exists an administrative liability on filing tax reports at the end of each calendar year.
GST will be added onto goods’ and services’ prices, which may not be very pleasant to customers.
2023 and 2024 GST Rate Changes in Singapore
There is an expected change in the GST rate in the upcoming 2023 and 2024.
Needed Preparations of GST-Registered Businesses for the Upcoming Increase
Part of the responsibilities of a GST-registered business is to brace for the upcoming increase in the tax rate. Essentially, their responsibilities would be strengthened.
The businesses must charge and account for the correct GST rate, depending on when the invoice was made.
Furthermore, these businesses must avoid penalties for late or non-filing of the tax.
Consequences for Late Registration of GST
It would be best to remain prudent in filing tax returns as there are consequences and penalties for failure to meet the responsibilities.
Failing to file for tax returns is considered an offence.
A late submission penalty amounting to $200 can be imposed
The business owners or proprietors can be summoned to court, as deemed necessary
Need Help on How to Register a GST Company in Singapore?
If you are looking for services to assist in the professional and accurate registration of GST companies in Singapore, fortunately, it is possible to get a helping hand in processing this for your company.
And, SJH Singapore has the GST services you need. They are composed of skilled individuals that can take on the task in the professional field.
They strive to work together with your company to ensure that your demands are met, and your requests are undertaken.
Do not hesitate to reach out to SJH SG for consultation and help on how to register a GST company in Singapore.