What is taxable turnover?

Key takeaways

• IRAS defines taxable turnover as the total value of all taxable supplies made in Singapore in the course or furtherance of a business: standard-rated and zero-rated supplies — for example local supplies of goods or services, exports, international services and, from 1 Jan 2023, imported low-value goods sold to non-registered buyers in Singapore.
• It leaves out exempt supplies (including exempt supplies zero-rated as international services, such as financial services to overseas persons), out-of-scope supplies and sales of capital assets such as machinery, equipment, office buildings and furniture. For an ordinary sale for money, the GST Act (s17(2)) values a supply as the consideration less the GST on it, and a business that is not registered generally cannot charge GST, so taxable turnover for the registration test is read as a GST-exclusive figure.
• On the retrospective view, registration is compulsory when taxable turnover for a calendar year is more than SGD 1 million (apply 1–30 January; registered from 1 March), unless the business is certain the next 12 months will not exceed SGD 1 million because of a circumstance IRAS specifies, such as large-scale downsizing or the expiry or termination of a high-value sales contract with a major customer where no new sales contracts are likely in the next 12 months, and keeps documentary evidence and a computation of the projected turnover; it checks again at the end of the next calendar year. On the prospective view it is compulsory when turnover is reasonably expected to exceed SGD 1 million in the next 12 months: apply within 30 days of the forecast. Where the forecast date is on or after 1 July 2025, registration normally takes effect 2 months from it (before then, on the 31st day after); where more than SGD 1 million of taxable supplies is expected within those 2 months, the Comptroller may register the business from the forecast date itself.
• Turnover is combined across businesses: a sole proprietor adds up all sole proprietorships, registered with ACRA or not, and trade or profession income; partnerships with the same partners are combined; a company counts its own turnover plus that of sole proprietorships it owns. IRAS may disregard a split whose purpose or effect is to avoid registration.
• Imported services and low-value goods under reverse charge are a separate SGD 1 million test, not added to taxable turnover, and apply only to a business that would not be entitled to full input tax credit if it were GST-registered. Overseas vendors register when global turnover exceeds SGD 1 million and B2C supplies of remote services or low-value goods to customers in Singapore exceed SGD 100,000 a year. Late notification can bring a fine of up to SGD 10,000 and a penalty of 10% of the GST due.