When does a Singapore offshore company have to register for VAT (GST)?

In Singapore, VAT is called “Goods and Service Tax” or GST for short. (Let’s stick to this term so that it’s easier for a reader to understand what it is all about). The country’s tax regulations oblige local companies to register for the local type of VAT only in case the taxable turnover exceeds SGD$1m.

It should be kept in mind that GST is levied on goods and services only within Singapore. Goods that are purchased and sold outside the territory without crossing the country border are not chargeable. Services are a bit more complicated in this respect: they always comprise a taxable turnover.

The GST rate is 7%, whereas for service export a zero rate is applied.