Pros & Cons Of Voluntary GST Registration

Author: Kenneth ([email protected])

Published: Tuesday March 16, 2021

What is GST in Singapore?

Goods and Services Tax, or better known as GST, is a general consumption tax that is levied on imported goods, as well as goods and services supplied in Singapore. GST is the equivalent of Value-Added Tax, or VAT, in other countries.

While everyone has common knowledge about GST as a consumer, business owners, especially new entrepreneurs, may wonder if they have to be GST registered, or if there might be any obligations or benefits that might come along with being a GST registered company.

According to IRAS, it is compulsory for a business to register for GST when its annual taxable supplies exceed $1 million, or if its expected taxable turnover in the following 12 months is foreseen to exceed $1 million. Businesses that do not fulfill these criteria are not required to register for GST, but they are nonetheless not forbidden from voluntarily registering for GST.

Pros & Cons Of Voluntary GST Registration: