What must I do when my company’s turnover is about to reach 1 million?

You have to monitor your company’s turnover for the next 12 months and the past 12 months very carefully.

If the company’s turnover for the past 12 months is more than S$1 million, you must register for GST (Goods & Service Tax) immediately.

If the company’s turnover for the next 12 months is anticipated to be more than S$1 million, it is mandatory to register for GST.

The correct method to assess your turnover is to split the 12 months into four different quarters. These quarters are periods of three months each. The end dates of these quarters are 31st March, 30th June, 30th September, and 31st December.

You have to register for GST if :

• Your total turnover at the end of a quarter, after adding turnover in the previous three quarters and the current quarter is more than S$1 million.
• You have strong evidence and reasons to believe that your turnover would reach more than S$1 million in the next 12 months.

In case your turnover is less than S$1 million in the past 12 months or expected to be less than S$1 million in the next 12 months, you are not required to take any action. But it would be best if you continue to analyze the turnover of your company, so you can immediately register for GST when liability arises for you.