Understanding the GST filing process is an important aspect of being a GST registered business. With that said, the whole process can be complicated, especially for first time registrators. Here’s everything you need to know about GST filing in Singapore:
Who Must File for GST in Singapore?
Businesses with a taxable turnover of $1million must register and file for GST. This is known as compulsory registration, and it applies to businesses that exceed the threshold within a calendar year.
Businesses can also opt for voluntary registration, even if their turnover is below the threshold. Once registered, businesses must comply with all GST filing and payment obligations, regardless of their turnover.
This is usually done on a quarterly basis, a month before the accounting period ends.
Preparing Your GST Return
Your GST return represents a large portion of the filing process. It is the summary of your businesses taxable transactions for the accounting period. It includes your total sales, purchases, and the GST collected (output tax) versus the GST paid (input tax).
The goal is to determine whether you owe GST to IRAS or are entitled for a refund. Your GST return should consist of all necessary documents such as sales invoices, purchase receipts and records of GST collected and paid.
Remember to prepare these documents beforehand to ensure a smoother filing process.
The Process of GST Filing Singapore
Step 1: Corppass Authorisation
Only authorised users can conduct the filing process. These users must be authorised via Corppass, making them the official representative for GST matters.
This could be you, someone in your business or even a third-party representative (e.g. tax agents).
Step 2: myTax Portal
Only users with Corppass authorisation can access myTax Portal. Once authorised, select “Company/Business Tax” from the main menu and log in using your SingPass. Navigate to the GST section and choose “File GST Return (F5)” to access the GST F5 form.
This is where you’ll declare your sales, purchases, output tax and input tax for the accounting period.
Step 3: Submission and Payment
Review your information carefully before making a submission. Once submitted, you’ll receive an acknowledgement page summarising the filing process. Keep a copy for your records and make any necessary payment if you have GST payable.
If you’re due for a refund, the IRAS will typically credit it to your bank account within a few weeks.
Deadlines and Amendments for GST Filing Singapore
Late Payment Penalty: A 5% late payment penalty will be imposed when you miss a deadline. This includes late filing, late payment or not filing at all. Filing on time without making a payment will also incur the same penalty.
In addition, a further 2% penalty will be added for every month the tax remains unpaid.
Making Amendments: You can make amendments for any errors in your submission. For errors within the same accounting period, you can simply revise and resubmit your return before the deadline.
However, if the error is discovered after submission, you’ll need to file a GST F7 (disclosure of errors on GST return). This form allows you to correct mistakes in previously filed returns.
Other Considerations for GST Filing Singapore
Nil Returns: Businesses with no transactions over the accounting period must still file nil returns. This means filing ‘0’ for all the applicable boxes on the GST F5 return form. By filing a nil return, you ensure compliance and avoid late payment penalties.
GST F8 Return: The GST F8 is used for GST deregistration. Companies that want to cancel their GST registration must fill in this form. The form is similar to the GST F5, as it requires you to declare your transactions for the final accounting period.
This form must be completed within a month before the accounting period ends.
Summary
Understanding the GST filing process can be the difference between submitting your returns on time or getting a late payment penalty. We’ve broken it down to make the process simpler and less daunting than it seems. Nonetheless, don’t hesitate to contact us if you need any help. Visit plco.com.sg to find out more!
