GST Filing Process in Singapore

Of the many things keeping Singaporean SMEs occupied, GST filing is one of the top priorities. At least, it should be. Staying compliant with IRAS (Inland Revenue Authority of Singapore) regulations is critical. It steers you clear of penalties and keeps you in good standing, plus, it keeps your bookkeeping tidy.

However, GST filing in Singapore isn’t always straightforward. There can be complications and even holdups, especially if you don’t understand what you’re doing.

So, let’s make your next tax season a little easier with a thorough, up-to-date GST submission guide with everything you need to know.

Understanding GST and its relevance to Singapore businesses

On the surface, GST is a consumption tax. It’s levied on the supply of goods and services in Singapore, as well as the import of goods into the country. It’s similar to VAT in other countries. 

GST is administered by IRAS, and, as of January 2024, the rate has increased from 8% to 9%.

Not everyone needs to pay GST. You only need to register for GST filing once your taxable turnover exceeds S$1 million in a calendar year or if you expect to reach that. You can also sign up for GST voluntarily under that threshold, which can sometimes benefit you if you have significant input tax claims.

It’s a pretty straightforward concept to grasp, registered businesses must charge GST on their taxable supplies and supply regular GST returns, or GST filings. Usually, businesses do that quarterly, so, it’s crucial to keep accurate records of:

• Transactions
• Invoices
• Claims

For Singaporean SMEs, this is a top-priority task. Not only does it keep you on the right side of IRAS, but it also keeps your bookkeeping clean and functional.

Who needs to file GST returns?

The good news is not every business in Singapore needs to pay GST, however, for many, it is compulsory. 

Essentially, you have to pay GST as long as you’re GST-registered. 

You are legally required to register for GST if:

• Your business has a taxable turnover exceeding S$1 million in the past 12 months
• You’re reasonably certain it will exceed that amount in the next 12 months

GST returns in Singapore aren’t about what type of business you have, it’s about how much you make. GST applies to all business entities that meet these criteria, you could be GST-filing for a sole proprietorship, a partnership, or a private limited company.

But what about voluntary registration? Why would anyone sign up for a tax they don’t need to?

Well, GST filing can, in some cases, enable businesses to claim input tax credits. It might also boost that all-important credibility with clients and suppliers.

However, even voluntarily registered businesses must comply with all GST responsibilities for at least two years.

Types of GST returns and their purposes

GST doesn’t just mean one thing. There are multiple types of GST returns, each one serveing a unique purpose depending on your filing situation.

Getting this right is crucial as accuracy is critical to GST submission.

Let’s take a look:

1. GST F5 return (standard quarterly return): The most common GST return form is the GST F5. All GST-registered businesses must file an F5 return quarterly, unless otherwise stated by IRAS. Businesses must submit the F5 return one month after the end of each accounting period, which captures:

1. The total value of taxable supplies
2. Output tax collected
3. Input tax claimed
4. The net GST payable or refundable

2. GST F7 Return (GST return for errors): We all make mistakes, so if you discover one in a previously submitted F5 return, you must file a GST F7 to correct it as soon as possible. The F7 then replaces the original F5 for that period. You might need an F7 if you find:

1. Underreported sales
2. Missed input tax claims
3. Any misstatements

3. GST F8 Return (final return upon cancellation): At some point, you might have to cancel your GST registration and stop paying. That could be because your business is closing down, or simply because your revenue has fallen below the registration threshold. Whatever the case, you’ll need an F8 form. This is a final return that accounts for all outstanding GST obligations up to the date of cancellation, including adjustments to input tax on assets held.

Step-by-step guide to filing GST returns

While there are several types of forms, filing GST in Singapore is relatively straightforward, especially with IRAS’s comprehensive e-filing system. We recommend filing digitally, as it simplifies the process significantly.

Your main gateway will be the IRAS myTax Portal. Here’s a step-by-step guide to help SMEs and sole proprietors in Singapore navigate it:

1. Authorize users via Corppass: Before accessing the GST filing system, you might want to authorize users, like tax staff, to act on your behalf. You can do this through Corppass. Simply:

1. Log in
2. Assign the relevant GST e-services (“File GST Return”) to your staff
3. Make sure users are correctly linked to your company’s Unique Entity Number (UEN)

2. Access the GST filing section: Now, you should be authorized and ready to go. Head to the IRAS myTax Portal and:

1. Log in using Singpass linked to your Corppass account
2. Go to “GST”. Find “File GST Return (F5/F8)”
3. Choose the correct accounting period and click “Next”

3. Complete the GST F5 form: Now, it’s time to actually fill out the F5. There are several fields, each with its own importance, which summarize your business’ taxable transactions. These include:

1. Box 1–3: Total value of standard-rated, zero-rated, and exempt supplies
2. Box 5: Output tax (GST collected on sales)
3. Box 7: Input tax (GST paid on business purchases)
4. Box 9: Net GST payable or refundable

4. Review and submit the return: Before you move on, take the time to go through your F5 with a fine-toothed comb and make sure everything’s in the right place. This will save you from potential delays.

1. Carefully review each section for accuracy.
2. Click “Preview” to generate a summary of your return
3. Once confirmed, click “Submit”. You should get an acknowledgement with a unique reference number. Make sure you save this.

5. Make payments and claim refunds: GST submission isn’t always the end of the road, sometimes, you may need to do more. For example:

1. If you owe GST, you must pay within one month after the end of the accounting period
2. If you are due a refund, IRAS will typically process and credit it to your registered bank account within 30 days

One of the best ways to lighten the burden and make sure your GST process runs smoothly is to use accounting software like QuickBooks. 

QuickBooks not only provides all the info you need for your F5 form, it can even automatically track and generate GST reports.

Common mistakes to avoid during GST filing

GST filing in Singapore isn’t simply a matter of sending a document, there are multiple moving parts to keep an eye on.

With that in mind, it’s natural that many SMEs find themselves dealing with mistakes along the way, which can cost more than time and money.

Here are some of the most common GST submission mistakes to watch out for:

• Incorrect classification of supplies: It’s unfortunately pretty easy to misclassify supplies. For example, businesses often confuse zero-rated (like exports) with exempt supplies (such as financial services or residential property rentals). That impacts the calculation of GST payable and input tax claims, so, make sure you regularly review IRAS guidelines and ask your accountant if need be.
• Over-claiming input tax: Not all expenses are GST-claimable. Sometimes, business owners accidentally claim on other expenses that would technically come under personal expenses. To be clear, only GST incurred on business-related expenses is claimable. Getting this wrong, even accidentally, could land you in serious trouble. Keeping detailed and itemized receipts can help you avoid this. You can even use QuickBooks to track claimable versus non-claimable GST.
• Missing filing deadlines: With busy business schedules, owners often overlook deadlines. However, GST returns must be filed within one month after the end of each accounting period. Remember, there are automatic penalties for late payments, so watch out.
• Incomplete or inaccurate records: Poor documentation can be catastrophic for businesses, even beyond GST. The IRAS requires businesses to maintain proper records for at least five years. Again, QuickBooks can lighten the load here considerably. 
• Not reviewing before submission: One of the easiest mistakes to make is not checking your F5 before you submit it. Sadly, this happens all too often, so always use the “Preview” function before submission, even if you’re certain there aren’t any mistakes.

Penalties for non-compliance

Dodging GST mistakes may be a challenge, but that doesn’t make the penalties for non-compliance any lighter. Failure to file your GST correctly can lead to serious financial and legal consequences.

These include:

• Late filing payment: Easily done, but best avoided. If you file your GST return late, IRAS may issue a late submission penalty. This is usually S$200 for each month the return is overdue (capped at S$10,000). You might also face a 5% late payment penalty on the unpaid GST, plus an additional 2% penalty per month (up to 50%) if it remains unpaid. 
• Incorrect or false submissions: Submitting incorrect GST returns is a serious offence, regardless of whether it was intentional. The penalties are the same in both cases, and could result in:
• Up to 200% of the tax is underpaid
• Fines of up to $5,000
• Prosecution
• Failure to register for GST: If your business is liable for GST registration, you must register. If you fail to do so, IRAS may impose a fine and backdate your registration. That would mean you’ll need to account for GST on past sales even if you didn’t collect it. 

Leveraging QuickBooks for efficient GST management

All this can add up to a costly and time-consuming GST process, especially for SMEs juggling multiple responsibilities.

But there’s an easier way to file your GST returns. 

QuickBooks is expertly designed to simplify and automate your GST compliance process in Singapore. Here’s how you can benefit:

• Automatic GST calculations: QuickBooks takes automation to a whole new level, including GST calculations. Simply set your GST rates according to IRAS requirements (including for standard-rated, zero-rated, and exempt supplies), and watch as QuickBooks automatically calculates GST on sales and purchases. Keep your output and input taxes clean without the risk of errors.
• Easily generate GST reports: With QuickBooks, you can even generate detailed, IRAS-compliant GST summary reports in seconds. 
• Timely filing reminders and integration: QuickBooks keeps you on track with custom reminders for GST filing so you never miss a deadline and keep those pesky penalties at bay. Some versions also integrate with IRAS’s ASR+ (Accounting Software Register), allowing for validated reporting that aligns with regulatory expectations.
• Better record-keeping and audit readiness: QuickBooks stores all your accounting essentials, invoices, receipts, journal entries, in the cloud. That means easy access and retrieval, wherever you are.

In short, QuickBooks is the smart way to clean up your GST process and give you better visibility into your financial health.

Conclusion

If it’s not already, GST filing in Singapore should be at the top of your to do list. While we’ve outlined exactly how to file a GST return, doing it correctly takes careful planning and precise attention to detail, anything less could result in penalties.

The first step is to see whether you’re liable to pay GST to begin with. Then, it’s simply a case of identifying the correct form (usually the F5 for standard quarterly filing) and filling it out as comprehensively and accurately as possible.

Remember, QuickBooks can do much of the heavy lifting for you. Try QuickBooks for free for 30 days today to learn how it can streamline your GST process in Singapore with compliant, lightning-fast accounting tools.