VAT and Sales Tax in Singapore

Singapore's Goods and Services Tax (GST) is a broad-based consumption tax administered by the Inland Revenue Authority of Singapore (IRAS) under the Goods and Services Tax Act (Cap. 117A). It applies to most goods and services supplied in Singapore and to certain imported goods and services. Understanding the rate history, supply classifications, registration thresholds, and filing obligations is essential for businesses operating in or selling into Singapore — and a qualified tax professional can help determine which rules apply to your specific situation.

What is the current GST rate and how has it changed?

The standard GST rate has been 9% since 1 January 2024. This followed a staged two-step increase that was publicly signalled in the Singapore Budget 2018: the rate rose from 7% to 8% on 1 January 2023, then from 8% to 9% on 1 January 2024. Before the 2023 increase, 7% had been in effect since 1 July 2007. IRAS notes the increase was designed to fund healthcare expenditure and aging-population costs. Singapore's 9% rate remains comparatively low among major economies — Japan and Australia charge 10%, the United Kingdom 20%, and most European Union member states 20-25%. The Singapore Government accompanied the increases with an enhanced GST Voucher Scheme providing annual cash, utility rebate (U-Save), and MediSave top-up payments to lower-income households to offset the regressive impact of higher consumption taxes (IRAS, "What consumers need to know with the new GST rate from 1 Jan 2024").

Which supplies are zero-rated versus exempt?

Singapore GST law creates three categories of supply. Standard-rated supplies attract the 9% rate and allow the supplier to claim input tax credits on related purchases. Zero-rated supplies are taxed at 0% — no GST is charged to the customer, but the supplier can still recover input tax paid on related expenses. Exempt supplies fall outside the GST system entirely — no GST is charged, and no input-tax credit is available on related costs.

Zero-rated supplies under the Fourth Schedule of the GST Act include: exports of goods to destinations outside Singapore, accompanied by required export documentation; international services such as cross-border transport of passengers and goods, services performed wholly outside Singapore, services supplied to non-residents not used in Singapore, and services to qualifying foreign customers relating to land and goods outside Singapore. The zero-rating supports Singapore's export-oriented economy by removing GST from the cost of exported goods and services.

Exempt supplies include: prescribed financial services (banking, lending, securities, life insurance, and most services listed in the Fourth Schedule to the GST Act); the sale and lease of residential property; and the supply of digital payment tokens (such as cryptocurrency). The import and local supply of investment precious metals -- qualifying gold, silver, and platinum meeting prescribed fineness standards -- are also exempt. IRAS administers these exemptions to support Singapore's financial-services sector, residential housing affordability, and investment-metals market (PwC, "Singapore Corporate - Other Taxes," April 2026).

Who must register for GST in Singapore?

Mandatory GST registration is required when a business makes taxable supplies exceeding SGD 1 million in a 12-month period. IRAS applies dual testing: a retrospective test (actual taxable turnover in the past 12 months exceeded SGD 1 million) and a forward-looking test (expected taxable turnover in the next 12 months will exceed SGD 1 million). A business meeting either test must notify IRAS and register within 30 days. Taxable supplies include standard-rated and zero-rated supplies but exclude exempt supplies and out-of-scope supplies.

Voluntary registration is available for businesses below the threshold. This is useful where a business has significant input-tax costs it wishes to recover, or where customers are GST-registered businesses that can themselves claim back the GST charged.

Two additional mandatory registration frameworks apply to cross-border digital trade. Under the Overseas Vendor Registration (OVR) regime -- introduced in phases from 1 January 2020 and extended from 1 January 2023 to cover low-value goods (items with a customs value of SGD 400 or below) -- overseas businesses with global annual turnover exceeding SGD 1 million AND Singapore B2C taxable supplies exceeding SGD 100,000 must register with IRAS and charge Singapore GST on qualifying supplies to non-GST-registered Singapore customers (IRAS, "Overseas businesses supplying remote services and low-value goods to Singapore"). The reverse-charge mechanism requires GST-registered Singapore businesses without full input-tax recovery entitlement to self-account for GST on imported services and low-value goods received from overseas suppliers, as if they were the supplier. A consultation with a qualified tax professional is the appropriate starting point for any business assessing OVR or reverse-charge obligations.

How do businesses file and pay GST?

GST-registered businesses file GST returns (Form F5) with IRAS on a quarterly basis, due one calendar month after the end of each prescribed accounting period. For example, a business with an accounting period ending 31 March must file and pay by 30 April. IRAS mandates electronic filing via the myTax Portal for all GST-registered businesses. Businesses on GIRO for payment have their deductions taken on the 15th of the month following the payment due date.

Returns disclose output tax collected on taxable supplies, input tax paid on purchases, and the net GST payable or refundable. Accurate tax invoices must be issued for all standard-rated supplies, and records must be retained for at least five years. Penalties apply for late filing of returns. Businesses with complex structures, international supply chains, or partial-exemption calculations should engage a qualified tax professional registered with the Institute of Singapore Chartered Accountants (ISCA) or a member of the Singapore Chartered Tax Professionals (SCTP) body.

For a broader overview of Singapore's tax environment, see the Singapore country overview.