September 26, 2022

World Trades

Finance Blog

What Are the Reasons for A GST Audit in Singapore?

3 min read

GST audits are conducted randomly for all GST-registered firms in Singapore. Besides, understanding the rationale for a an Audit is critical for both business and companies’ owners. The main purpose of the audit is to check whether Goods & Services tax is recorded and accounted for properly in your company or business. 

You don’t have to worry about these GST audits because they happen commonly everywhere in Singapore. Moreover, these audits don’t necessarily mean that your business or company is in difficulty. An audit like this is necessary to guarantee that Singapore enterprises are following tax rules and duties.

Which type of company is more likely to have GST audits?

Goods & Services tax audits can happen more for the companies or businesses with more sales as well as input tax credits. If there are any differences between the two companies’ tax files, an audit may be required. Otherwise, these audits happen on IRAS risk-based analysis, randomly for any company. Being in Singapore, all the business and companies’ owners should stay updated about the regulations. This can be quite difficult to do while managing your business or company. 

Hence, it is better to hire a GST specialist who provides the best audit services. There are so many firms in Singapore that are providing Goods & Service tax audit services to their clients. But all the companies may not provide the best services to their clients.

When it comes to audit, it is the IRAS officers who are going to check the transactions related to your business. They will check whether the tax returns are correctly reported. The IRAS officers may request documents related to your business and interviews with the key personnel’ in your business or company. This process is usually time-consuming. 

Any mistake which you do in your paperwork or tax filing can lead to a drop in your GST compliance rating score. Besides, this rating will be given by the government in Singapore by checking whether your business or company is in compliance with the tax filing laws. Hence, it is extremely important to hire a Goods & Service tax specialist. 

GST Returns

If your company or business is already registered, you must submit a form called GST F5 to the IRAS every quarter of a year. While the job may appear intimidating, the government allows company owners to online file their taxes. You must specify some of the crucial information related to your company or business-like complete Goods & Service tax collected and the value of your local and international sales. If you fail to file the GST returns, this could result in paying penalties to the government.

To make a company or business more compliant with the audits, here are a few things which you must do. 

When you hire GST specialists, they will provide you with suggestions on invoicing procedures and tax obligations. If they observe any loopholes in your business or company’s system, they will let you know how to bring everything under your control. 

You’ll be able to discover any bookkeeping issues if you keep good records and check them on a regular basis. This not only protects you, but also offers companies a more accurate view of their financial status.

How to find a good GST specialist in your location?

Check the client ratings of different firms which provide the audit services to their clients. The better the rating the better their services would be, which means you can stay relaxed by hiring their specialists.

You must also check the experience levels before hiring a Goods & Service tax specialist. The reason for this is, an experienced specialist can do much better than an inexperienced specialist. However, this doesn’t mean that inexperienced specialists don’t provide good services to their clients. You need to do thorough research from your side before hiring an inexperienced one, to avoid wasting your money. 

Choose a reputed and leading firm like JL Accounts for your business or company GST filing, to stay with peace of mind. There are also some good websites where you can find reviews related to different firms which provide GST filing services. Check those websites to make your job easy.