A Quick Guide on Goods and Services Tax in Singapore
While in the European jurisdictions the tax which is imposed on products and services sold by companies is called the Value Added Tax (VAT)
, in Singapore
this tax is named Goods and Services Tax (GST)
. GST was introduced
by the Singapore Government on 1 April, 1994 and its value was of only 3% at that time. Nowadays, the GST rate is 7%.
There are also some goods and services that are exempt from GST
, namely: the exports of goods and international services.
Companies which operate in Singapore and have a turnover that exceeds 1 million S$ in the last 12 months or expect a turnover for the next 12 months that will exceed 1 million S$ must register for GST
. For more information on how to register a company for GST
, please check out our detailed article on Value Added Tax in Singapore.