How much is GST in Singapore?
The standard goods and services tax (GST) in Singapore is 7%. It applies to most goods and services with a few exemptions. These include basic foods, certain medical and healthcare services and some educational courses.
What is a GST rate?
GST (goods and services tax) is a type of consumption tax. The government in Singapore applies it on the sale of goods and services.
GST isn’t paid by businesses — instead, it’s charged to consumers in the price of goods, and collected by businesses, making it an indirect tax. Businesses are then responsible for reporting it to the government.
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How to work out GST in Singapore.
Total price including GST
To work out the total price at the standard rate of GST (7%), multiply the original price by 1.07.
Total price excluding GST
You can calculate the total price excluding the standard GST rate (10%) by dividing the original price by 1.07
How does GST work?
GST is collected at each point in the production of goods — every time value is added and a sale is made. It’s designed to be paid by the consumer at the end. Here’s an example:
- A supplier sells a badminton racket to a shop for S$120. They owe S$20 GST to the government.
- The shop pays $120 but can claim the S$20 back from the government, so the shop doesn’t pay the GST.
- The shop sells the racket to the customer for S$220. The GST is $44 which the customer, as the end-user, pays in full to the shop.
- Together with the reclaimable S$20 GST, the shop will end up paying S$24 to the government.
You may claim a refund on the 7% Goods and Services Tax paid on your purchases, If you make any purchase of more than S$100 (including GST) at participating shops.
There are multiple ways of receiving the refund — either get paid immediately at a refund booth at the airport or send the approved form to a refund company.
How to get a GST refund in 3 simple steps?
Get a Tax Refund Application Form from the retailer. You might also be asked to show your passport to check that you’re eligible.
At customs, present your passport, GST form(s), GST invoice(s) and the tax-free goods.
If all the criteria is met, customs will approve your form. You’ll get a signed form that allows you to receive the refund.
FAQ about GST rate.
Complying with GST in Singapore means following the Singapore GST (Goods and Services Tax) Law. This includes preparing the correct invoices, keeping the necessary records of transactions for a period of at least 5 years and using legitimate foreign currency rates.
As a GST-registered business in Singapore:
- You have to charge GST on all taxable goods and services you sell.
- You must file a GST return every 3 months, even if you have no GST to report.
- You can reclaim the GST you paid for goods and services from other GST-registered businesses.
When reporting your GST, keep in mind, you must pay GST even if you didn’t charge it from the customer — the price that you charge has the GST included.
There are a few goods and services in Singapore that are exempt from GST and are not taxable. They include:
- Financial services
- The sale and lease of residential properties
- Importation and local supply of investment-oriented precious metals
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