In short: Singapore's Goods and Services Tax (GST) is a broad-based consumption tax of 9% levied on most supplies of goods and services and on imported goods. It is collected in stages along the supply chain by GST-registered businesses, but ultimately borne by the end consumer.
What is GST in Singapore?
Goods and Services Tax (GST) in Singapore is a broad-based consumption tax of 9%, levied on most supplies of goods and services made in Singapore as well as on goods imported into Singapore. GST is administered by the Inland Revenue Authority of Singapore (IRAS), and on imports by Singapore Customs.
How GST works through the supply chain
GST is charged at each stage of the supply chain on the value added. Businesses that are GST-registered:
- Collect output tax on their sales to customers; and
- Pay input tax on their purchases and imports.
The net GST payable to the government is the difference between the output tax collected from customers and the input tax paid on business purchases and imports. This ensures GST is effectively only charged on the value added at each stage and avoids double taxation.
When must a business register for GST?
A business must register for GST if its taxable supplies exceed SGD 1 million within a 12-month period, or if it reasonably expects them to exceed SGD 1 million in the next 12 months. Businesses below the threshold may also choose to register voluntarily — for instance, where most input tax can be recovered.
Exempt supplies
Certain goods and services are exempt from GST, including:
- Most financial services;
- The sale or lease of residential properties; and
- The sale of investment precious metals.
Exempt supplies sit outside the GST system — no output tax is charged, and the supplier generally cannot recover input tax attributable to those supplies.
Zero-rated supplies
Goods exported from Singapore and international services are zero-rated, meaning GST is charged at 0%. Unlike exempt supplies, zero-rated supplies remain within the GST system, so the supplier can still claim input tax on related purchases. This is what makes Singapore exporters effectively GST-neutral.
GST on imports
GST also applies to imported goods and is collected by Singapore Customs at the point of import. If the importer is GST-registered, the import GST paid is generally claimable as input tax against the importer's output tax, subject to the usual rules.
Schemes, reliefs and e-invoicing
A number of GST schemes and reliefs are available to ease cash flow and compliance for GST-registered businesses — for example, the Major Exporter Scheme (MES) for substantial exporters, the Import GST Deferment Scheme (IGDS), and various group registration regimes. There are also ongoing e-invoicing requirements which businesses should factor into their GST and accounting workflows.
Overseas Vendor Registration regime
Singapore's GST regime includes an Overseas Vendor Registration (OVR) regime, which requires overseas suppliers to register and charge GST on remote services and low-value imported goods supplied to Singapore consumers. The OVR rules ensure GST is applied consistently regardless of where the supplier is located, and level the playing field with local businesses.
A worked example
Suppose there are three stages in the supply chain for a product — a manufacturer, a retailer, and the end consumer.
-
The manufacturer imports raw materials worth S$100. Singapore Customs collects GST at 9% on the import — S$9 (the manufacturer's input tax on the import).
-
The manufacturer sells the finished product to the retailer for S$200 plus 9% GST. The output tax is S$18, so the retailer pays the manufacturer S$218.
The manufacturer pays IRAS the difference between the GST collected from the retailer (S$18) and the GST paid on imports (S$9), which is S$9.
-
The retailer can claim back the S$18 input tax paid to the manufacturer. The retailer then sells the product to the end consumer for S$300 plus 9% GST — output tax of S$27. The consumer pays S$327.
The retailer pays IRAS the difference between GST collected from the consumer (S$27) and GST paid to the manufacturer (S$18), which is S$9.
Tracing the money to IRAS:
| Stage | Sale value | Output tax | Input tax claimed | Net GST to IRAS |
|---|---|---|---|---|
| Import (raw materials) | S$100 | S$9 (collected by Customs) | — | S$9 |
| Manufacturer → Retailer | S$200 | S$18 | S$9 | S$9 |
| Retailer → Consumer | S$300 | S$27 | S$18 | S$9 |
| Total to IRAS | — | — | — | S$27 |
Although GST is charged at every stage, each business only pays IRAS the net GST on the value they add. The final consumer bears the full S$27 GST cost, which is exactly 9% of the final sale price of S$300 — the entire GST burden falls on the end consumer, even though the tax flows through three businesses on its way to IRAS.
The bottom line
GST is a consumption tax paid by the end consumer but collected in stages through the supply chain by GST-registered businesses, with a current rate of 9% in Singapore. For business owners, the practical priorities are: register on time once you cross the SGD 1 million threshold, charge and remit output tax accurately, claim the input tax you are entitled to, and apply the correct treatment for exports, exempt supplies and imports.
To learn more about how we support clients on GST registration, quarterly returns, ASK reviews and IRAS audits, see our Tax services.