If you are not GST registered, you cannot charge GST.c_salvarin wrote:Hello guys,
I would like you guys to share experience on GST. The thing is I am opening consulting firm. I will set it as Private Limited Company (Pte. Ltd.) I will provide consulting service to client in Thailand and charge them as consulting fee.
Because I don't think my turnover would exceed 1 million/annum so don't plan to register GST.
However, I would like to know:
Does the consulting fee subject to GST?
If yes, then do i need to register GST and what is the GST rate(0% or 7% rate) for consulting fee servicing overseas? and
The process of GST registration and submission?
Would you guys please kindly share your experience?
Thanks so much in advance & Cheers!
sundaymorningstaple wrote:That is too big a subject for an online forum and trying to condense it to something easily digestible. Basically, if your turnover (total revenues) does not exceed 1 million, you don't need to register for, or charge GST to your clients either within or without Singapore. For all the nitty-gritty start here for the short-course on GST in Singapore:
http://www.iras.gov.sg/irasHome/page01.aspx?id=768
Thanks so much for sharing!Strong Eagle wrote:Consulting services are subject to GST IF you are GST chargeable, that is at least 1 million turnover.
GST is generally not applied to services not performed in Singapore IF the business entity you are working for has an office in the country in which you are working.
But, until you hit 1 million, don't worry about it. When you get close, ask IRAS.
I have had contracts in Oz, Thailand, Malaysia, Hong Kong, and for the most part no GST was collected. There are exceptions.
We have a sales office here. Revenue not exceeding S$1mil. Almost all of our parts and machines are imported from Japan, so we have to pay import duty?/or GST.Strong Eagle wrote:Consulting services are subject to GST IF you are GST chargeable, that is at least 1 million turnover.
GST is generally not applied to services not performed in Singapore IF the business entity you are working for has an office in the country in which you are working.
But, until you hit 1 million, don't worry about it. When you get close, ask IRAS.
I have had contracts in Oz, Thailand, Malaysia, Hong Kong, and for the most part no GST was collected. There are exceptions.
I would most definitely register for GST as this allows you to recover GST paid to the customs authorities. The only downside is that you must raise your prices 7 percent because you will now need to collect GST on all sales.MauMau wrote:We have a sales office here. Revenue not exceeding S$1mil. Almost all of our parts and machines are imported from Japan, so we have to pay import duty?/or GST.Strong Eagle wrote:Consulting services are subject to GST IF you are GST chargeable, that is at least 1 million turnover.
GST is generally not applied to services not performed in Singapore IF the business entity you are working for has an office in the country in which you are working.
But, until you hit 1 million, don't worry about it. When you get close, ask IRAS.
I have had contracts in Oz, Thailand, Malaysia, Hong Kong, and for the most part no GST was collected. There are exceptions.
But we are not registered for GST, hence can't charge customer GST. I think that means we have to absorb GST for goods coming into Singapore.
I understand from IRAS website that you can voluntarily register for GST. Shall I do it? So that I can "offset" the GST I pay for goods coming in.
Thanks in advance for the advice.
I'm already factoring in the 7% in my selling price. That's why I thought to claim GST, so I can actually reduce my selling price by 7%.Strong Eagle wrote:I would most definitely register for GST as this allows you to recover GST paid to the customs authorities. The only downside is that you must raise your prices 7 percent because you will now need to collect GST on all sales.MauMau wrote:We have a sales office here. Revenue not exceeding S$1mil. Almost all of our parts and machines are imported from Japan, so we have to pay import duty?/or GST.Strong Eagle wrote:Consulting services are subject to GST IF you are GST chargeable, that is at least 1 million turnover.
GST is generally not applied to services not performed in Singapore IF the business entity you are working for has an office in the country in which you are working.
But, until you hit 1 million, don't worry about it. When you get close, ask IRAS.
I have had contracts in Oz, Thailand, Malaysia, Hong Kong, and for the most part no GST was collected. There are exceptions.
But we are not registered for GST, hence can't charge customer GST. I think that means we have to absorb GST for goods coming into Singapore.
I understand from IRAS website that you can voluntarily register for GST. Shall I do it? So that I can "offset" the GST I pay for goods coming in.
Thanks in advance for the advice.
The real question then is will this price increase reduce your sales by an amount greater than the GST you must pay to customs? If yes, then you might rethink.
Relevant web pages:
http://www.iras.gov.sg/irasHome/page_ektid668.aspx
From the IRAS Website (last updated Dec 2009 - 7 months ago)bookkeeper wrote:nowadays IRAS advocate voluntary registration for all biz. Biz owners are not supposed to suffer GST costs, its meant for consumers. The 1million threshold is no more applicable now.
Don't see anywhere where they "advocate" registering for GST.GST is a self-assessed tax. Businesses are required to continually assess the need to be registered for GST.
In most cases, registering for GST is compulsory when:
* the turnover of your business is more than $1 million for the past 12 months; or
* you are currently making sales and you can reasonably expect the turnover of your business to be more than $1 million for the next 12 months.
Otherwise, you can choose to be voluntarily registered for GST. Please refer to the following links for more details.
Well, you can reduce your selling price, but now you have to collect 7% from your customer.MauMau wrote:I'm already factoring in the 7% in my selling price. That's why I thought to claim GST, so I can actually reduce my selling price by 7%.
Thanks for the info.
They did, a restaurant owner was asked to pay estimated GST for the past 3 months because his reported turnover hit $800,000 only for the year. They sent a letter to him to payup the estimated GST base on last quarter's sales and gave him a GST number! I had to write in to haggle and haggle, at last IRAS relented and settle for half the amount.sundaymorningstaple wrote:From the IRAS Website (last updated Dec 2009 - 7 months ago)bookkeeper wrote:nowadays IRAS advocate voluntary registration for all biz. Biz owners are not supposed to suffer GST costs, its meant for consumers. The 1million threshold is no more applicable now.Don't see anywhere where they "advocate" registering for GST.GST is a self-assessed tax. Businesses are required to continually assess the need to be registered for GST.
In most cases, registering for GST is compulsory when:
* the turnover of your business is more than $1 million for the past 12 months; or
* you are currently making sales and you can reasonably expect the turnover of your business to be more than $1 million for the next 12 months.
Otherwise, you can choose to be voluntarily registered for GST. Please refer to the following links for more details.
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