GST, Goods and Services Tax, is regarded as the consumption tax levied on the majority of the goods and services sold within the Asian country of Singapore, irrespective of the business location. All businesses must carry out GST Filing in addition to applicable provincial sales taxes subjected to specific exceptions. A business collects the taxes and thereafter remit them at certain times thus effectively and efficiently acting as an agent. Businesses are permitted to collected the taxes paid on incurred expenses relating to the activities of their business.
Does Your Business Need to Register?
Every business owner has to understand how GST, as well as relevant provincial taxes, will impact on their situation before initiating any type of commercial activity in the Asian country of Singapore. Basically, every establishment in the business of sale of goods and services for profit in Singapore must charge GST. Exempted goods and services include child care services, most health and medical services, residential land and property etc. This should be balanced against the expected competitive advantage that arises from extra administrative costs (hassle) from filing returns in addition to not charging the GST. It could be very sensible to pick a more regular filing period if you are of the feeling that you may lack the discipline to section the funds with sales taxes adding up and thereafter lead to an evident liability. In addition, a more regular filing period can be beneficial if you are expecting more expenses than sales since your business is entitled to a refund.
A yearly GST filing period is ideal for you if you carry out your bookkeeping sparingly since penalties and interest are levied on balances owing for belated filings. Another advantage associated with yearly reporting period is that the GST accrued can be invested in an account that will bear interest till the due date.
Irrespective of the filing frequency chosen, it is vital to make sure you keep complete and correct accounting records and you pick an accounting software that can track and calculate GST.