exporting from Singapore - gst tax help if poss

[southsea]

Hello All,

I have read so many sites on the tax system in Singapore,but I have
just been told something I need to clarify.
If I buy product in Singapore and sell to Europe, is there anyway I can claim the 5% tax back - I have heard only companies making 1$ MILLION
turnover can claim ?
Maybe I need a tax advisor or business advisor - can anybody help ?

[sundaymorningstaple]

The one mil you are talking about is this: All companies with gross revenues (turnover) in excess are required to register for GST which mean they have to charge their customers GST and can claim against that for GST paid out. They are not Exempt. Businesses with less than one mil can also register for GST but it's not a wise move as small shops/offices will often get sales only because they don't have to charge GST thus save the customer 5% in cashflow. Hope this help. Over 1 mil must register, under 1 mil no need but can if you want.

sms

[southsea]

Thank you for the info. I was hoping that GST would be like V.A.T in Europe,in that customers NOT in EU were exempt from paying this tax and that their wholsale suppliers were able to claim back all their V.A.T paid on proof of export paperwork.

[sundaymorningstaple]

Thank you for the info. I was hoping that GST would be like V.A.T in Europe,in that customers NOT in EU were exempt from paying this tax and that their wholsale suppliers were able to claim back all their V.A.T paid on proof of export paperwork.

Okay, misread or didn't take into account the export procedures. Following is the link directly for your Export question and GST in General:
Goods & Services Tax & Exports[/quote]

sms

[ksl]

Thank you for the info. I was hoping that GST would be like V.A.T in Europe,in that customers NOT in EU were exempt from paying this tax and that their wholsale suppliers were able to claim back all their V.A.T paid on proof of export paperwork.

You can claim GST back once you have proved the goods are out of the country, not until! and it doesn't matter if your a business or Tourist. Also if you are none residen of Singapore you can still claim your GST back, when leaving the country say before the 183 day period is up.

I am not sure however on the legality, if you stay over your 183 day period, especially if you do not have PR status. this you will have to check, but I presume, that if you still don't have PR status, you would be eligible for GST back, once the goods leave SIngapore, not before.

[southsea]

Wow,thank you KSL and Staples... This is what I thought,if a normal
tourist can claim his 5% back at the airport then surely a wholesaler selling bulk out of Singapore should have the same allowance.
I was getting worried, because if I was not able to claim the GST back
it would affect my profit margins greatly.

Government guidelines are sometimes difficult to understand - so I thank you both for giving me a basic info.

I am hoping to get my Entrepreneur work permit - but is it also possible
to open a company here should my application be turned down (which I
do not expect !!!) ?

[sundaymorningstaple]

I am hoping to get my Entrepreneur work permit - but is it also possible
to open a company here should my application be turned down (which I
do not expect !!!) ?

Yes it is possible but you would need a local director plus other factors. I'll point you to ACRA site. "Accounting and Corporate Regulatory Authority" as most anything you will need to know including the ability to register on line can be started from this site or www.bizfile.com.sg (related site that is crossed linked).

Hope this helps. Additionally, you may want to PM "Strong Eagle" as he has a company here via the Entrepass scheme. He can give you some good info from a personal perspective. (you will need at least 2 more posts for your PM function to be operational. "5"posts is the magic number.

sms

[ksl]

Wow,thank you KSL and Staples... This is what I thought,if a normal
tourist can claim his 5% back at the airport then surely a wholesaler selling bulk out of Singapore should have the same allowance.
I was getting worried, because if I was not able to claim the GST back
it would affect my profit margins greatly.

Government guidelines are sometimes difficult to understand - so I thank you both for giving me a basic info.

I am hoping to get my Entrepreneur work permit - but is it also possible
to open a company here should my application be turned down (which I
do not expect !!!) ?

Be careful purchasing on the internet in Singapore, because when you bid and win the item, the Singapore companies screw you! for GST. I have argued the fact many times, that it was an auction, and that I should only pay the auction price. the GST is the Singapores problem unless otherwise stated on the auction website at the time, that it is for export only.
Many problems occur, because they advertise world wide. but don't tell locals it is for export only. which is besides the point. it should be clearly stated for export only.

[southsea]

Once again,thank you for your infos.
I will be having nothing to do with internet trading.
Just old fashioned buying from local suppliers and selling to
wholesalers around the world.
I would have thought that exporting goods from here would be welcomed
by immigration,but I am not counting my chickens yet !!
The main issue I worry about, is not getting the GST back, as this would
seriously ruin my margins - any price increases would make me uncompetitive.
If this works out I owe you people a beer....post nr 3 by the way

[southsea]

Actually,that was post nr 4 ....so that makes this post nr 5 !!!!!

[ksl]

Actually,that was post nr 4 ....so that makes this post nr 5 !!!!!

Footie interested

http://www.singaporeexpats.com/forum/forum56.html