Get a grant to lower the costs involved in becoming a GST-registered trader. GST traders can collect GST and claim back for GST paid to suppliers.

For who?

* All small and medium enterprises (SMEs) who voluntarily register to become GST traders for the first time between
1 March 2007 and 31 March 2009.

o GST traders can collect GST and claim for GST paid to suppliers.

o Voluntary registration applies only to SMEs whose annual turnover is S$0 - S$1 million. It is compulsory to register for GST if your annual turnover is more than S$1 million.

* Your business qualifies as a SME if:

o your business is registered in Singapore
o your fixed assets are worth S$0 - S$15M*
o you have 0 - 200 employees (for non-manufacturing companies)*
For what?

* To provide subsidies to SMEs who wish to voluntarily register for GST to claim back GST paid to suppliers.

* When SMEs become GST traders, they need sound accounting systems to ensure GST is paid and claimed on time. The grant helps to lower the cost of setting up these accounting systems.

How much?

* Each SME can get a grant of up to S$5,000. The S$5,000 can be used to pay for:

o 100% off your accounting software costs
o 50% of qualifying costs

* Qualifying costs* include:

o consultancy fees
o training fees charged by consultants
o IT hardware costs
o one time activation charge and Internet subscription fees of up to 1 year for a new Internet connection

*All qualifying costs must be incurred after project commencement or effective GST registration date, whichever is earlier.

Things to note

* You can apply for this grant only once.

* Your application must be received by SPRING Singapore at least one working day before the commencement date of the project or purchase of hardware, software or Internet services, whichever is earlier.

* This grant is given on a reimbursement basis. You need to pay for all the costs upfront and claim for the funds after your accounting systems are set up.

* Approval for voluntary registration of GST is at the discretion of the Comptroller of GST. Once approval is given, you must remain registered for at least 2 years.

* There are two deadlines you need to pay attention to:

o Your application for this grant must reach SPRING Singapore within 3 months of being approved as a GST trader.

o You have 6 months from the day your grant is approved to complete setting up your accounting system.