So, starting 1 July 2025, if your business in Singapore expects to earn over S$1 million in taxable turnover in the next 12 months, you’ve got 60 days before you must start charging GST. Before, that was just 30 days. This rule is for businesses using what’s called the “prospective basis.”
1. What You Must Do
- Forecast when you’ll cross S$1 million (date X).
- Within 30 days of X, apply for GST registration.
- From X, count two months, not one that’s when you MUST begin charging GST.
You still need proof of the forecast, like a signed contract, purchase order, or invoice, IRAS needs evidence, not just hope.
2. Timeline Made Simple
| Key Date | Action Required |
|---|---|
| Date X (e.g. 1 July 2025) | Forecast turnover > S$1 million |
| +30 days (e.g. 31 July 2025) | Apply for GST registration |
| +2 months (e.g. 1 Sept 2025) | Start charging GST |
3. Why IRAS Made the Change
IRAS wants to make life easier for SMEs and start-ups. One month can feel tight so giving two months helps companies prepare better. About 1,500 SMEs stand to benefit each year.
4. What You Can Do With That Extra Month
A. Get Your Systems Ready
- Update billing and invoicing software to handle GST tax details.
- Ensure you can issue proper tax invoices once the 60 days are up.
B. Align Contracts and Communication
- Add GST clauses and pricing changes into contracts, quotes, and invoices.
- Inform customers early “hey, GST starts on September 1.”
C. Train Your Team
- Make sure the finance and sales teams know when to add GST.
- Don’t mix up dates you can only charge GST from the effective date.
D. Input Tax Claims
- You can still claim input tax on goods/services bought up to 6 months before the effective date.
- But since the effective date is later, your claim window shifts forward too.
5. What You Need to Watch Out For
- Applying late? You could face penalties.
- Can’t forecast properly (just a gut feel)? You won’t qualify for the extra 60 days only documents support your forecast.
- This extension doesn’t delay your GST returns. You still file GST F5 returns as usual even if you’re not charging GST yet.
6. Extra Bonus: Align With e-Invoicing
Singapore is rolling out the InvoiceNow (e-invoicing) system between late 2025 and early 2026. If you need GST soon, use this extra time to upgrade your systems for both GST and e-invoicing at the same time. Saves double trouble later.
7. Final Thoughts
This change from a 30-day to 60-day grace period might seem small but for a lean Singapore business, that extra month can make a big difference.
It means:
- No mad rush to register and get systems live overnight
- Time to adjust pricing and talk to clients before the GST hit
- More breathing room to train your team and test your invoicing flow
But remember: the clock starts ticking on your forecast date. Plan early track your turnover, prepare your systems, speak up if you hit that S$1 million mark.
If you need help figuring it out or want a smoother setup, our team can assist.