For many small businesses in Singapore, keeping up with statutory obligations is just part of running a business — and one of the most significant is GST registration. Starting 1 July 2025, an important update to GST regulations will give SMEs more breathing room when it comes to charging GST after crossing the S$1 million turnover threshold.
But there’s a common misconception about this change. Here’s what’s actually happening — and what business owners should do to stay ahead.
Once a business becomes liable for GST registration — typically when its taxable turnover exceeds S$1 million over 12 months — it must notify IRAS and apply to register.
Here’s what changes from 1 July 2025:
This gives businesses more time to prepare for implementation after registration — but not more time to notify IRAS or submit an application.
For SMEs operating with lean teams and limited resources, the previous 30-day timeline to go from GST liability to full compliance could feel rushed — especially when it came to updating systems, revising invoices, or adjusting pricing.
By extending the grace period to begin charging GST:
This change acknowledges the realities SMEs face when moving into a new compliance phase — and gives them time to make that shift carefully and correctly.
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While the extended grace period provides some relief, it’s not a reason to delay preparation. Here’s how businesses can stay ready:
Keep close track of your rolling 12-month taxable turnover. Knowing when you’re approaching the threshold allows you to act before deadlines become a risk.
Not all revenue is equal. Most goods and services sold in Singapore are taxable, but there are exceptions. Businesses need clarity on what counts — and what doesn’t.
The application to register for GST still must be submitted within 30 days of liability. This part hasn’t changed. Missing this deadline can result in penalties and backdated tax.
Once registered, the additional 60-day buffer allows time to:
These tasks take time — so don’t leave them to the last moment.
Interpreting IRAS guidelines or handling compliance timelines isn’t always straightforward. Businesses that seek clarity and support early are in a stronger position to meet their obligations smoothly.
The updated regulation reflects an understanding of the pace at which businesses grow — and how critical it is to support that growth with practical compliance frameworks.
This change gives small business owners space to prepare and act with confidence, without the pressure of rushing implementation. Still, understanding the difference between when to apply and when to start charging GST is key.
With the right awareness, systems, and habits in place, businesses can move through the GST registration process efficiently and without disruption — keeping operations strong and compliance secure.
Focus on your business while our tax team handles your compliance. Get comprehensive support from registration to filing, plus direct access to your Customer Success Manager via SMS. Chat with us now, email [email protected], or use our contact form.
Here are some articles you might find helpful:
How Can Singapore’s SMEs Reduce Manpower Costs?
Do Foreigners Need to Pay GST When Buying Products for Resale in Singapore?
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