GST - Charging GST to Customers
When to Charge Goods and Services Tax (GST)
It is important for you to know how much GST you should charge to your customers. Charging incorrect GST rates may not only cause trouble for your customers, but may also lead to penalties and fines from IRAS. Please consult with the Harvest Accounting team if you need any clarification.
Generally, supplies for GST purposes can be broadly classified into the categories below:
- Taxable supply
- Standard-rated supply (9%)
- Zero-rated supply (0%)
- Non-taxable supply
- Exempt supply (0%)
- Out-of-scope supply (0%)
Standard-rated supply (9%)
GST is charged at the prevailing rate of 9%. GST-registered businesses must charge GST on all sales of goods and services made in Singapore. If the supply does not fall under any other category, then charge standard-rated supply of 9%.
Zero-rated supply (0%)
For exports of goods, GST is charged at 0% (zero-rate). Zero-rated supplies are considered taxable supplies. However, GST is charged at 0% instead of 9%.
GST is also charged at 0% (zero-rate) for the provision of international services. International services are similarly considered taxable supplies where GST is charged at 0% instead of 9%.
Exempt supply (0%)
GST does not need to be charged on exempt supplies, which are broadly categorised into:
- The provision of financial services
- The supply of digital payment tokens (with effect from 1 Jan 2020)
- Sale and lease of residential properties and
- The import and local supply of investment precious metals (IPM)
Out-of-scope supply (0%)
Out-of-scope supplies include sale of goods not brought into Singapore, sales of overseas goods made within the Free Trade Zone and Zero GST Warehouses, and private transactions.
Common GST scenarios
If you would like to know whether you need to charge GST or deem GST on other business transactions (e.g. recovery of expenses, gifts and samples, the issue of vouchers), please refer to Common scenarios - Do I charge GST.
Information required on a tax invoice
A tax invoice must contain the following information:
The tax invoice must also provide details on exempt, zero-rated, or other supplies, if applicable. The gross amount payable for each type of supply must be separately stated.
The team at Harvest Accounting can check to ensure that your Xero account is configured correctly in order to issue GST compliant invoices.
💾 etaxguide_gst_gst-general-guide-for-businesses.pdf
GST - Do I Need to Register for GST? | Charging GST to Customers | Claiming GST