GST registration can be either compulsory or voluntarily. Under compulsory GST registration, you can either use the retrospective view or the prospective view to determine if you have hit the $1 million threshold.
COMPULSORY REGISTRATION: RETROSPECTIVE VIEW
From 1 Jan 2019, you are required to register for GST if your taxable turnover for a 12 month period at the end of each calendar year exceeds $1 million.
COMPULSORY REGISTRATION: PROSPECTIVE VIEW
If at any time, you can reasonably expect your taxable turnover in the next 12 months to be more than $1 million.
You will have to register for GST when there is certainty that your taxable turnover will exceed S$1 million in the next 12 months. You must have supporting documents to support your forecast value of $1million. For example:
Signed contracts or agreements
Accepted quotations or confirmed purchase orders from customers
Invoices to customers with fixed monthly fee charged
Income statements showing that past 12-month period was already close to S$1 million and that annual turnover is on an increasing trend
On the other hand, you are not required to register for GST if there is no certainty in your forecast.
Before registering for GST voluntarily, you should consider whether:
you are able to meet the requirements for voluntary registration; and
the benefits outweigh the costs of registering for GST. The main benefit is that you can claim the GST incurred on the business expenses. However, when you are a GST registered trader, there are responsibilities that you need to fulfil. This will add extra compliance and administrative costs.
You may refer to the IRAS website to have a better understanding of the pros and cons of voluntarily registration.
Our service fee is only $200 for voluntarily registration and $300 for compulsory registration.