With Singapore’s broad Goods and Services Tax (GST) imposed on most transactions, staying compliant can be tricky for businesses. Failure to adhere to GST laws can lead to financial penalties, audits, and damage to your reputation. Hiring an experienced tax compliance consultant is the best way to avoid issues and optimize your GST obligations. Here are some tips for selecting the right GST consultant and understanding what GST compliance entails in Singapore.
Factors to Consider before Hiring a Tax Compliance Consultant
Experience
When researching firms, look for an established presence in Singapore with extensive experience specifically with GST. They should have in-depth expertise on regulations from the IRAS and be up to date on the latest changes and interpretations. Ask about the specific team that will be handling your account to judge their qualifications.
Proactive Approach
Look for consultants that take a proactive approach by making recommendations to minimize your GST burden rather than just passively filing returns. The ideal firm will analyze your business model and operations to identify ways to lower your liability legally through exemptions, zero-rating, rebates and more.
Technology Capabilities
Consider the technology capabilities of the firm as well. Can they seamlessly integrate with your existing finance systems? Do they offer tools for managing invoices and returns? Robust technology infrastructure ensures accurate filings and reduces manual work.
GST-Related Services
Evaluate the range of GST-related services offered beyond return filing. Do they handle registrations, advisory services, and assessments? The top consultants provide specialized assistance with issues like imported goods, foreign supplier registration, e-commerce transactions, and more.
Responsiveness
Don’t underestimate the importance of responsiveness and clear communication. Look for consultants that provide regular updates on filing deadlines, quick turnaround on queries, and transparency into their preparation and submission processes.
Key Responsibilities of a Tax Consultant
Once you have a good tax consultant onboard, what exactly does GST compliance involve for your Singapore business? Here are some key responsibilities you can rely on them for:
– Helping you register for GST within the required 30 days of meeting the minimum turnover. Late registration leads to back payment of taxes plus penalties.
– Advising you on optimal GST accounting schemes and rates for your transactions. Certain supplies can qualify for zero rating or GST exemption to minimize tax liability.
– Issuing GST invoices within required timeframes and including all mandatory information on them. This creates an audit trail for claiming tax credits.
– Filing your monthly GST returns (GST F5) by the deadline and remitting any tax owed. Late filing incurs penalties.
– Submitting your Annual GST Returns (GST F8) which reconciles your monthly returns. Your liability is assessed based on this filing.
– Applying for GST refunds you may be eligible for due to zero-rated supplies or expenses exceeding collected GST.
– Managing compliance for imports and exports, including paying GST on imports.
– Conducting GST health checks to identify and address any compliance gaps or risks proactively.
– Appealing any IRAS rulings or unfavorable tax assessments on your behalf.
– Advising on record keeping requirements to support tax claims and manage audits.
With hefty GST fines and interest on late payments, it pays to work with a GST expert consultant that fully understands Singapore’s GST regime. They will help you avoid missteps, claim your full input tax credits, and identify opportunities for greater savings. Their guidance gives you peace of mind that your business remains fully compliant.
