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4 Factors To Take Note When Doing A Voluntary Gst Registration
by Kristen White BloggerSometimes, it may become a better choice to voluntarily register for GST. However, that does not mean you should automatically do it. There are still factors that you should take into consideration when you apply for GST registration in Singapore. Let us look into the list below and see if it is more beneficial for your business to do a voluntary registration.
Organized Bookkeeping
When you become registered in GST, you should also ensure that you are committed to doing administrative tasks such as GST filing management and ensuring that your bookkeeping processes are compliant with their requirements. What you want to secure is that you are capable of filing GST Returns before the deadline of every quarter.
If you do not do this on time, you might be charged of heavy fines and penalties. Apart from this, you might be leading yourself to a lot of stress and reduced focus on your business trying to work on the returns.
Management of Cash Flow
Some businesses can give longer terms of credit just because it is in its nature. There will be times when you will have to shell out your own money to settle payments before you can get the proceeds of the sales from your customers. This is primarily because the GST on sale is based upon an earlier date of the invoice or the receipt.
What this means is that you should make sure that your company has enough funds and cash flow to support the whole process of registration.
Become Open for Audit by GST
When you are registered in GST, you will be asked to submit your company for auditing at random times by IRAS. There will also be times that IRAS will call on both your customers and suppliers to confirm or validate the records on the filed GST and ensure its accuracy.
Assessment of the GST Registration of Your Customers and Suppliers
Generally, it makes sense financially to register for GST if your suppliers are also registered for it. This is for the reduction on the original price of the goods and services. In other cases, you will find that both the customers and the suppliers are registered for GST. What this means is that you are subject to get more incentives when you register your business for GST.
Online Business
Online businesses can also take advantage of GST registration because of the possibility of reducing the actual price of the services or goods. However, for this to happen, you may want to implement a system on your website or online portal that will differentiate and separate the online sales from Singapore from the rest of the international sales.
Minimum Period of Being Registered
It is ultimately important to be decided where you are headed with your registration for GST because when you do a voluntary registration, the minimum period would be two years.
When you decide to apply for GST registration in Singapore, you are making a management decision that could affect everyone in your company. So, be sure that you consider these things before you do it.
Organized Bookkeeping
When you become registered in GST, you should also ensure that you are committed to doing administrative tasks such as GST filing management and ensuring that your bookkeeping processes are compliant with their requirements. What you want to secure is that you are capable of filing GST Returns before the deadline of every quarter.
If you do not do this on time, you might be charged of heavy fines and penalties. Apart from this, you might be leading yourself to a lot of stress and reduced focus on your business trying to work on the returns.
Management of Cash Flow
Some businesses can give longer terms of credit just because it is in its nature. There will be times when you will have to shell out your own money to settle payments before you can get the proceeds of the sales from your customers. This is primarily because the GST on sale is based upon an earlier date of the invoice or the receipt.
What this means is that you should make sure that your company has enough funds and cash flow to support the whole process of registration.
Become Open for Audit by GST
When you are registered in GST, you will be asked to submit your company for auditing at random times by IRAS. There will also be times that IRAS will call on both your customers and suppliers to confirm or validate the records on the filed GST and ensure its accuracy.
Assessment of the GST Registration of Your Customers and Suppliers
Generally, it makes sense financially to register for GST if your suppliers are also registered for it. This is for the reduction on the original price of the goods and services. In other cases, you will find that both the customers and the suppliers are registered for GST. What this means is that you are subject to get more incentives when you register your business for GST.
Online Business
Online businesses can also take advantage of GST registration because of the possibility of reducing the actual price of the services or goods. However, for this to happen, you may want to implement a system on your website or online portal that will differentiate and separate the online sales from Singapore from the rest of the international sales.
Minimum Period of Being Registered
It is ultimately important to be decided where you are headed with your registration for GST because when you do a voluntary registration, the minimum period would be two years.
When you decide to apply for GST registration in Singapore, you are making a management decision that could affect everyone in your company. So, be sure that you consider these things before you do it.
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About Kristen White 
Blogger
285 connections, 0 recommendations, 1,021 honor points.Joined APSense since, August 19th, 2016, From Chicago, United States.
Created on Jun 4th 2018 05:54. Viewed 343 times.
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