allanyeowjj wrote:hi everyone, i just started a small business as SP, doing ecommerce business but mainly dropshipping.
i do not think i will have that much of a million turnover to register for gst. suppose i file my tax with IRAS and is a non registered gst business, do i have to charge tax of my products to customers who buy online? am doing dropshipping means my supplier overseas may ship the physical goods to singapore or can be to other customers overseas if the order came from overseas.
another question is about the change to gst for import services in 2020. if my business do freelance service such as translation to customers( both local and overseas), do i have to charge gst then for the service provided i am not gst registered? what is the condition to charge gst anywhere? is it need to be gst registered?
thanks and look forward your reply!
The number one thing: If you collect GST, you must remit GST to IRAS, and to do either, you MUST be GST registered. If you are not GST registered, then you cannot collect GST at all.
Therefore, in addition to the million in turnover rule, you must see if there are any other factors that would require you to collect GST, and if the answer is yes, you must register for GST, even if you don't meet the million dollar turnover rule.
For your business, I don't see that you will need to collect GST unless your GST sales reach a million dollars. However, be sure to contact IRAS and confirm what I am telling you.
We will assume you have a turnover of greater than 1 million, so you are required to to collect GST.
a) Any shipments of goods to to customers overseas do not attract GST, therefore you do not need to collect.
b) Any import, that is, anything that comes into Singapore by parcel post, UPS, DHL, etc, is subject to GST if the value is greater than $400... BUT... it is the customer that must pay the GST to customs... so again, you do not collect GST because you are using an overseas supplier.
Note that if you importing goods into Singapore yourself, then selling them from a Singapore address to a Singapore customer you would need to collect GST, but for offshore shippers, the GST is collected by customs
c) If you provide services to Singapore to Singapore customers, then you must charge GST to those customers, IF your turnover is greater than 1 million. And of course, you must be GST registered.
d) Services provided to offshore customers are not GST taxable.