Registration for Goods and Services Tax (“GST”) In Singapore

Compulsory GST Registration

A person may be liable for compulsory registration under the Goods and Services Tax Act 1993 (“GST Act”) under the following categories of thresholds:

Person who makes taxable supplies,
Overseas Vendor Registration (“OVR”) for overseas persons supplying Seventh Schedule supplies in Singapore, or
Person who receives distantly taxable goods (“DTG”s) and services from overseas suppliers (“imported services”) and who cannot claim his input tax in full (reverse charge regime).

The thresholds for compulsory registration for GST comprise the retrospective basis (backward-looking) and prospective basis (forward-looking). A person may be liable to register for GST under either basis. The thresholds under the retrospective views are based on actual historical numbers whereas those under prospective views are based on whether the criteria will be met in the next 12 months.

Before 2019, the criteria for retrospective basis for compulsory GST registration is applied on a rolling 4-quarters basis, which is the current quarter plus the previous 3 quarters. With effect from 2019, the criteria for the retrospective basis have been changed to be applied on a calendar year basis, which is January to December of every year from 2019 onwards.

Taxable supplies in Singapore

For GST purposes, a taxable supply is a supply of goods or services made in Singapore other than an exempt supply. In examining whether the thresholds for compulsory registration under this category have been met, supplies of goods and services that are capital assets of the business and reverse charges should be excluded.

A person who makes taxable supplies but is not registered is liable to be registered if any of the criteria set out below have been met.

Retrospective basis – Taxable supplies in Singapore

For years 2018 and before, a person is liable for GST registration if the total value of all the person’s taxable supplies made in Singapore in that calendar quarter and the previous three quarters has exceeded $1 million – for example, January to March Year 2 and April to December Year 1. This liability to register for GST arises at the end of the quarter in which the threshold is met.

With effect from 1 January 2019, the criteria have been changed to be applied on calendar year basis instead of applying it to the current plus previous three quarters. A person becomes liable for GST registration at the end of the year 2019 or a subsequent calendar year if the total value of the person’s taxable supplies made in Singapore in that calendar year has exceeded $1 million.

From year 2022 and later years, a person who belongs in Singapore will also need to include certain specified Seventh Schedule supplies to taxable supplies in Singapore to determine liability for GST registration. These specified Seventh Schedule supplies are:

Supplies made to a customer in Singapore that are treated as the supplies of the operator of an electronic marketplace instead of an overseas underlying supplier, and
Supplies of a person who makes, arranges or assists in the delivery of distantly taxable goods supplied to a customer in Singapore.

For the purposes of Seventh Schedule supplies, a customer is one who is not a GST-registered business that receives the supplies in the course or furtherance of its business – for example, a consumer who receives the goods or services in his personal capacity.

The liability to register for GST arises at the end of the calendar year in which the relevant thresholds are met.

It should be noted that the provisions for liability to register for GST are not restricted to persons belonging in Singapore. As such, a person who does not belong in Singapore but makes the relevant taxable supplies in Singapore will be liable to be registered for GST under the Act.

Prospective basis – Taxable supplies in Singapore

A person is liable to register for GST if there are reasonable grounds for believing that the person’s taxable supplies made in Singapore will exceed $1 million in the next 12 months.

As in the case of retrospective basis for year 2022 onwards, a person who belongs in Singapore will need to add the specified Seventh Schedule supplies (as described above) to the person’s taxable supplies in Singapore to determine whether there is any liability for GST registration based on the prospective basis.

Reasonable grounds for believing that taxable supplies will exceed the thresholds include concluded contracts and accepted quotations.

If the threshold is met, the liability to register arises on the date the assessment is made – in other words, at the beginning of the 12-month period.

Transfer of business as a going concern – Retrospective basis

Where a business carried on by a taxable person is transferred to another person as a going concern before 1 January 2019, the transferee becomes liable to be registered if the transferee’s taxable supplies made in Singapore in the quarter in which the transfer took place and the previous three quarters exceeds $1 million.

If the business is transferred on or after 1 January 2019, the transferee becomes liable to register for GST if the transferee’s taxable supplies made in Singapore in the calendar year before the year in which the transfer took place exceeds S$1 million.

In addition to the above, if the transfer of the business takes place on or after 1 January 2022 and transferee belongs to Singapore, the taxable supplies of the transferee under paragraph 3(2)(b)(ii) and (3A) of the Seventh Schedule is to be included in determining if the threshold for registration has been reached.

The liability of the transferee to register for GST arises at time of transfer.

Transfer of business as a Going Concern – Prospective basis

Under the prospective basis, the transferee becomes liable to be registered at that time if there are reasonable grounds for believing that the transferee’s taxable supplies in Singapore and, if the transferee belongs in Singapore, taxable supplies under paragraph 3(2)(b)(ii) and (3A) of the Seventh Schedule, will exceed S$1 million in next 12 months.

The liability of the transferee to register for GST arises at time of transfer.

Taxable supplies in Singapore – Exemption from registration

A person is not liable to be registered for GST under the retrospective basis before 1 January 2019 if the person’s taxable supplies in Singapore in the next 4 quarters will not exceed S$1 million.

From 2019 onwards, a person is exempted from registration for GST if the person’s taxable supplies made in Singapore will not exceed S$1 million in the next calendar year. If the person belongs in Singapore, taxable supplies under paragraph 3(2)(b)(ii) and (3A) of the Seventh Schedule will need to be included to determine if the criteria is met.

An application to the Comptroller of GST is required to be exempted from registration.

Taxable supplies in Singapore – Variable Capital Companies (VCCs)

Where there are mergers of sub-funds and the umbrella VCC is not GST-registered, there are requirements for the umbrella VCC to be registered for GST on both retrospective and prospective bases if the conditions are met. An umbrella VCC is exempted from registration for GST if the Comptroller of GST is satisfied that the value of its taxable supplies made in Singapore for the purpose of that sub-fund in the next calendar year will not exceed S$1 million.

Overseas Vendor Registration (“OVR”) regime

The Overseas Vendor Registration (“OVR”) regime came into effect on 1 January 2020. Under this regime, a person who belongs outside Singapore may be liable to be registered for GST in Singapore if the person makes “Seventh Schedule” supplies which exceed the specified thresholds.

Seventh Schedule supplies refer to remote services, certain non-remote services, distantly taxable goods (“DTG”s) and supply of goods that are allowed to be treated as DTGs. In examining whether the thresholds for compulsory registration under this category have been met, supplies of goods and services that are capital assets of the business should be excluded.

For the purposes of a Seventh Schedule supply, the customer of the supply excludes a GST-registered person who receives the supply in the course or furtherance of a business.

Remote services

Remote services refer to services where there is no necessary connection between the place where the services are physically performed and the location of the customer of those services. These remote services are Seventh Schedule supplies when they are supplied to a customer in Singapore by a supplier who is taxable person outside Singapore, an overseas underlying supplier or an operator of an electronic marketplace treated as making the supply, or if the services are the elected supplies by operator of an electronic marketplace.

Remote services do not include any services which would be an exempt supply if made in Singapore, international services which would have qualified for zero-rating or services supplied by a foreign government which would have been a taxable supply if supplied by the Government.

Non-remote services

Non-remote services are ancillary services provided by a supplier of remote services which would otherwise not have been chargeable with GST, and the Comptroller is satisfied that the supply of non-remote services is within such circumstances.

Distantly taxable goods (“DTGs”)

Distantly taxable goods (“DTG”s) refer to goods delivered into Singapore by postal services or imported by air with values of up to S$400 and, at their point of sale, are not dutiable goods (or, if they are dutiable goods, the customs or excise duties are waived), the supply of which is not an exempt supply, and the goods are located outside Singapore’s customs territory.

DTGs includes goods transported by land or sea that are allowed to be treated as distantly taxable goods.

Goods treated as DTGs

Goods that are transported via land or sea which are supplied by a supplier, operator of an electronic marketplace or re-deliverer which is treated as making the supply of the goods, which would otherwise be DTGs, may apply for the goods to be treated as DTGs.

Retrospective basis – OVR

An overseas person is liable to be registered under the OVR regime on a retrospective basis from the end of 2019 and subsequent years if the person’s taxable supplies, and supplies outside Singapore which would have been taxable supplies if made in Singapore, have exceeded $1 million and the person’s Seventh Schedule supplies have exceeded $100,000, in that calendar year (both conditions are met).

The liability to register under the above retrospective basis arises at end of the calendar year in which the thresholds are met.

Prospective basis – OVR

The liability of an overseas person to register for GST can also arise on a prospective basis at any time on or after 1 January 2020. This liability arises when there are reasonable grounds for believing that the person’s taxable supplies and supplies outside Singapore which would have been taxable supplies if made in Singapore will exceed $1 million, and the person’s Seventh Schedule supplies will exceed $100,000 in the next 12 months.

The liability to register on the prospective basis arises when the reasonable grounds mentioned above comes into existence.

Transfer of business as a Going Concern – OVR

From 1 January 2020, where a business is transferred by an overseas taxable person who makes Seventh Schedule supply to another overseas person, the transferee may become liable to register for GST if not already registered at the time of the transfer of the business.

The transferee of such a business becomes liable for GST registration if, in the calendar year before the transfer of the business, the value of all the transferee’s taxable supplies and supplies outside Singapore, which would have been taxable supplies if made in Singapore, has exceeded S$1 million and the transferee’s Seventh Schedule supplies has exceeded S$100,000.

The transferee is also required to be GST registered if there are reasonable grounds for believing that, during the next 12 months from the time of the transfer of the business, the value of all the transferee’s taxable supplies, and supplies outside Singapore which would have been taxable supplies if made in Singapore, will exceed $1 million and the Seventh Schedule supplies will exceed $100,000.

The liability to register for GST arises at the time of the transfer of the business.

Exemption from registration – OVR

A person is not liable to be registered under the retrospective bases above if the Comptroller is satisfied that at least one of the two thresholds giving rise to liability to register for GST will not be met again in the next calendar year.

Person registered under OVR who makes taxable supplies

A person which is registered for GST under the OVR regime has to inform the Comptroller of GST within 30 days if the criteria for registration is met as a result of taxable supplies made by the person in Singapore – for example, if the person’s taxable supplies in Singapore exceeded S$1 million in the previous calendar year or if there are reasonable grounds to believe that the person’s taxable supplies in Singapore will exceed S$1 million in the next 12 months.

Reverse Charge regime

A person who receives distantly taxable goods (DTGs) or imported services is also liable to be registered for GST under the Reverse Charge regime. Imported services are those that are supplied by an overseas person, including overseas branches, to a GST-registered business in Singapore which received the goods as a business and cannot claim its input tax in full.

In contrast with the first 2 categories of criteria for compulsory GST registration, capital assets are not excluded from the amount of DTGs and imported services received.

Reverse charges – Retrospective basis

From the end of 2019 and subsequent years, a person is liable to be registered if the total of DTGs and imported services received by him exceeded S$1 million in a calendar year and the person is not entitled to credit for the full amount of input tax in that calendar year.

Liability to register arises at end of relevant calendar year in which the above criteria are met.

Reverse charges – Prospective basis

From 1 January 2020 onwards, a person is also liable for GST registration at any time if there are reasonable grounds for believing that the total value of DTGs and imported services that will be received in next 12 months will exceed S$1 million and the person is not entitled to credit for the full amount of input tax in those 12 months.

Liability to register arises on the date those reasonable grounds arose.

Reverse charges – Transfer of Business

From 1 January 2020 onwards, where a business carried on by a taxable person who received DTGs or imported services is transferred as a going concern to another person, the transferee becomes liable to be registered at that time if the DTGs and services received by the person in the previous calendar year exceeded S$1 million and the transferee is not entitled to claim the full amount of input tax.

The transferee is also liable to register for GST if there are reasonable grounds for believing that DTGs and imported services received by the transferee will exceed $1 million in the next 12 months and the full amount of input tax cannot be claimed in those 12 months.

The liability to register arises at the time of the transfer of the business.

Cessation of liability to be registered

Taxable supplies

For a person who is liable for GST registration due to making of taxable supplies in Singapore, the liability to be GST registered ends if the Comptroller is satisfied that the person’s taxable supplies will not exceed S$1 million in next 12 months, provided that it is not due to cessation or suspension of making of those supplies of 30 days or more.

Overseas Vendor Registration

The liability for registration for a person who is registered under the Overseas Vendor Registration (“OVR”) regime ceases when the Comptroller is satisfied that the total value of the person’s taxable supplies and supplies outside Singapore, which would have been taxable if the supplies are made in Singapore, will not exceed S$1 million, or if the person’s Seventh Schedule supplies will not exceed S$100,000 in the next 12 months. This is provided that the decrease is not due to cessation or suspension of making of those supplies of 30 days or more.

Reverse charges

A person who is liable to be registered under the Reverse Charge regime ceases to have such a liability when the Comptroller is satisfied that DTGs and imported services to be received by him in next 12 months will not exceed S$1 million, or if person will be entitled to claim input tax in full.

Exemption from Registration for GST

A person who makes taxable supplies and who is otherwise required to be registered may apply for exemption from registration if the person’s taxable supplies are all zero-rated or would be zero-rate if person is registered.

A recipient of DTGs and imported services may also apply to be exempted from registration for GST if the person’s taxable supplies are substantially zero-rated.

Notification and Registration

Notification

Generally, a person is required to notify the Comptroller within 30 days when the liability to register for GST arises. This may be the end of the quarter or calendar year, whichever is applicable, for liability to register on retrospective bases.

For prospective bases for compulsory registration, the liability to register for GST arises on the first day of the period (the next 12 months), which is when the reasonable grounds for the forecasts arise. A person who is liable under this provision is required to inform the Comptroller within 30 days.

Registration date (Effective date)

If the registration is based on retrospective basis, the registration date will be the day immediately after the end of the month after month in which the 30th day falls – for example, 1 March Year X1 if the liability to register arises at the end of October to December Year X0, or such earlier date as may be agreed.

Under prospective basis for compulsory GST registration, the registration date will be the day immediately after the 30 days notification period – for example, 31 January Year X1 if the liability to register rises on 1 January Year X1. However, if there are reasonable grounds to believe that the thresholds for the prospective bases will already be met in the first 30 days (the notification period), the Comptroller may register the person with effect from the beginning of that period – i.e., from the date the liability for GST registration arose.

Temporary arrangements for Seventh Schedule supplies and reverse charge supplies

There are temporary arrangements for Seventh Schedule and reverse charge supplies which apply to the periods up to 22 October 2019 and 23 October to 31 December 2019, periods up to 23 September 2022 and from 24 September to 31 December 2022. A person who is liable to be registered due to making of Seventh Schedule supplies and reverse charges is required to notify the Comptroller within specified dates. There are also specified GST registration (effective dates) specified in the legislation.

Comptroller may refuse registration or impose conditions

For all three categories for compulsory registration, the Comptroller may, if he thinks fit, refuse the registration of any person for the protection of revenue. The Comptroller may register a person after such refusal and must notify the person of the registration. The effective date of registration cannot be earlier than 30 days from the date of such notice.

Comptroller may impose conditions and may vary, add or remove any condition. Registration may be cancelled if any condition breached.

Voluntary GST Registration

A person who is not liable to be registered for GST may request to be registered on a voluntary basis if the required conditions are met. The person must either be making taxable supplies or specified exempt supplies that are exports or international services, or if the person is carrying on a business and intends to make such supplies in the course or furtherance of that business. A person not belonging in Singapore and makes or is treated as making Seventh Schedule supplies may also request to be registered on a voluntary basis. Recipients of DTGs and imported services who are not entitled to claim input tax in full may also request for voluntary GST registration.

An application will have to be made to the Comptroller to be registered on a voluntary basis. Once the person is registered on this basis, the registration will remain for at least 2 years.

A person who is voluntarily registered on the above basis is required to notify the Comptroller within 30 days if the person ceases to make or ceases to have intention to make those supplies or if the person ceases to receive or ceases to have intention to receive those DTGs or imported services.

Alternatively, a person with a business establishment in Singapore or incorporated in Singapore and does not make taxable supplies but makes supplies outside Singapore, which would have been taxable supplies if made in Singapore, or if the person makes supplies of goods under customs control and other supplies which are disregarded and which would otherwise be taxable supplies, may also apply to be registered for GST on a voluntary basis.

The person who is voluntarily registered on the above basis is required to notify the Comptroller within 30 days if the person ceases to make or ceases to have intention to make those supplies or if the person starts to make or have intention to make taxable supplies.

The Comptroller may impose, add, vary or remove conditions such voluntary registrations on the above two bases. The registration may be cancelled by the Comptroller if any condition is breached or if the person does not make taxable supplies or specified exempt supplies which qualify as exports or international services.

Notifications to Comptroller

A person who is registered on a compulsory basis is required to notify the Comptroller within 30 days if the person ceases to make or ceases to have intention to make taxable supplies or receive the DTGs or imported services.

Cancellation of GST Registration

A person who is not liable to be registered may request for the GST registration to be cancelled and the Comptroller must cancel that person’s GST registration. The GST registration of a person may be cancelled if the person is not liable to be registered or if the person was not registrable or has ceased to be registrable. The Comptroller may cancel the registration of a person that is part of a Missing Trader Fraud.

However, the Comptroller may refuse to cancel the registration of a person who was registered on a voluntary basis if the person has not ceased to make taxable supplies, or has not ceased to receive DTGs or imported services and the person is not entitled to claim input tax in full.