Singapore’s goods and services tax (GST) affects how businesses price, sell, and grow in one of Asia’s largest markets. GST requirements apply to domestic and international businesses, and it’s important to understand the details.

Below, we explain the current Singapore GST rate, when registration is required, and how cross-border sales are treated.

What’s in this article?

• What is the Singapore GST rate?
  
• How does Singapore’s GST work?
  
• Which goods and services are subject to GST in Singapore?
  
• When does a business need to register for GST in Singapore?
  
• How does GST registration work in Singapore?
  
• How does GST registration for foreign or overseas businesses work?
  
• Can businesses register for GST voluntarily?
  
• What is the difference between GST and VAT in Singapore?
  
• How Stripe Tax can help
  

What is the Singapore GST rate?

Singapore’s GST is 9%. This is the standard rate that applies to most taxable goods and services supplied in Singapore. The GST is broad-based, relatively low, and designed to tax end consumption rather than business activity.

How does Singapore’s GST work?

GST applies to goods and services supplied in Singapore and to goods imported into Singapore. In the 2025 fiscal year, Singapore collected 20 billion Singapore dollars (SGD) in GST, about 22% of the country’s total tax revenue.

If your business is GST-registered in Singapore, you add GST to taxable supplies made in Singapore. If you aren’t registered, you can’t charge GST, and you also can’t recover GST on your business expenses.

GST collected from customers is output tax, while GST paid on business purchases is input tax. When you file your GST return, you pay the Inland Revenue Authority of Singapore (IRAS) the net difference if output tax exceeds input tax. You receive a refund if input tax exceeds output tax. Prices shown to customers are usually GST-inclusive, and businesses separate the GST portion when reporting and filing returns.

Most businesses file GST returns quarterly, though businesses also have the option to file monthly. GST returns report total output tax, total input tax, and a single net amount payable or refundable for the period. Accurate GST handling depends on correct tax calculation at checkout, clear invoicing, and reliable reporting.

Which goods and services are subject to GST in Singapore?

Goods and services are taxable unless they are classified as zero-rated or exempt. Here are the main categories used for GST.

Standard-rated supplies

Many goods and services sold in Singapore are taxed at the 9% standard rate, including many retail goods, professional services, digital subscriptions sold locally, accommodation, food and beverage sales, and commercial property transactions.

Zero-rated supplies

Certain supplies are taxable at 0%. In these cases, GST is not charged, but input tax can still be claimed. This mainly covers exports of goods and qualifying international services, such as a flight from Singapore to another country.

Exempt supplies

Some transactions are exempt from the GST system, which means no GST can be charged or reclaimed. These include many financial services, the sale and lease of residential property, investment-grade precious metals, and digital payment tokens.

Out-of-scope supplies

Transactions that take place wholly outside of Singapore, such as goods sold from one foreign country to another without entering Singapore, are not subject to GST and do not count toward GST turnover.

When does a business need to register for GST in Singapore?

A business must register for GST if its taxable turnover exceeds 1 million SGD in a 12-month period. Taxable turnover includes standard-rated and zero-rated supplies, but excludes exempt and out-of-scope supplies.

There are two tests for compulsory registration: retrospective and prospective. The retrospective test looks at actual turnover during the previous 12 months, while the prospective test applies when a business reasonably expects to exceed 1 million SGD in the next 12 months.

Retrospective registration follows a fixed timeline. If taxable turnover exceeds 1 million SGD by the end of a calendar year, the business must apply for GST registration by January 30 of the following year, and registration takes effect on March 1.

Prospective registration is triggered by expectation rather than results. If a business signs a contract or enters a situation where exceeding 1 million SGD becomes likely, it must apply for registration within 30 days of that expectation forming.

Failure to register can be costly. IRAS can backdate registration to the point it should have occurred, which means GST can be payable on past sales even if it was never charged to customers. Keep in mind that not all revenue counts toward the registration threshold. Revenue from exempt supplies, such as many financial services or residential rentals, does not count toward taxable turnover.

How does GST registration work in Singapore?

Businesses apply online through IRAS’s myTax Portal using their unique entity number (UEN). They submit business details, turnover information, and supporting documents through a single digital form. Compulsory and voluntary registrations follow the same process, but voluntary applications often come with additional conditions. IRAS might request invoices, financial statements, contracts, or forecasts from any business to substantiate turnover figures or business activity.

General Interbank Recurring Order (GIRO), a direct debit mechanism often used in Singapore to make payments to government agencies, is typically required for payments and refunds. Many applications are approved within a few weeks, assuming the documentation is complete and no follow-up is required. Once approved, IRAS issues a GST registration number and an official start date. Businesses must not charge GST before that date and must charge it on all taxable supplies from that date onward.

How does GST registration for foreign or overseas businesses work?

A business doesn’t need a physical presence in Singapore to fall within the GST net. Under Overseas Vendor Registration (OVR) rules, foreign businesses are required to register for GST if their global turnover exceeds 1 million SGD and their sales to non-GST-registered customers in Singapore exceed 100,000 SGD in a 12-month period. This regime applies mainly to digital services and low-value goods sold directly to consumers in Singapore, including subscriptions, downloadable software, streaming services, and ecommerce shipments below the customs import threshold.

Overseas vendors collect GST from Singapore customers at checkout and remit it to IRAS. They register under a pay-only scheme that focuses on collecting and remitting GST, without input tax recovery. This keeps compliance lighter but ensures tax is collected.

When sales are made through electronic marketplaces, the electronic platform itself can often be treated as the supplier for GST purposes and required to account for the tax. Sales to GST-registered Singapore businesses are typically excluded from overseas vendor registration and can instead fall under reverse-charge rules. Under reverse-charge rules, the responsibility for reporting GST falls to the business customer in Singapore rather than the overseas supplier.

Can businesses register for GST voluntarily?

Businesses that are below the compulsory registration threshold can still register for GST if it makes commercial sense for their model. Registering voluntarily allows a business to reclaim GST paid on business expenses, which can substantially improve cash flow for businesses with significant local costs. Voluntary registration works well for many B2B or export-heavy models. If customers are GST-registered or supplies are zero-rated, then charging GST typically does not affect pricing competitiveness.

Voluntarily registered businesses must remain registered for at least two years and comply with all filing and recordkeeping requirements during that time. If registering voluntarily, businesses must charge GST correctly, file returns on time, and manage documentation even if sales remain modest. Businesses should make the decision carefully.

What is the difference between GST and VAT in Singapore?

Singapore’s GST is a value-added tax (VAT) in everything but name. Both GST and VAT tax consumption. They are charged at each stage of the supply chain and allow businesses to recover tax paid on inputs, so the burden falls on the final consumer. GST is the legal and functional name used in Singapore’s tax system. When people refer to “Singapore VAT,” they are referring to GST.

Registration, charging tax on sales, claiming input tax, filing periodic returns, and remitting a net amount all work the same way under GST as they do under many VAT systems globally. Exemptions, zero-rating rules, and tax rates vary by jurisdiction, but those differences exist between VAT countries as well. If a business already understands VAT compliance, it can apply much of the same logic in Singapore and simply adjust for the local rate and rules.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, VAT, and GST on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful API.

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.