7. Under What Circumstances Must A Business Register For Gst?

For a brief overview on GST registration, you may refer to the brochures for  sole-proprietors (PDF, 383KB),  partnerships (PDF, 381KB) and  companies (PDF, 382KB).

On this folio:

• Compulsory registration
• Computing your business turnover
• FAQS
• Related Content

Compulsory registration

Yous must register forGST if your taxable turnover is:

1. Under theretrospective  view, more than than $ane million at the end of the calendar twelvemonth, or
2. Under the prospective  view, expected to be more than $one million in the next 12 months

Taxable turnover

Taxableturnover refers to the total value of all taxable supplies made in Singapore in the course or furtherance of businesses, whichinclude:

1. standard-rated supplies (e.g. local supply of appurtenances or services), and
2. cipher-rated supplies (eastward.thou. consign of goods or  supply of international services ),

butexclude:

1. exempt supplies (including exempt supplies that fall within the definition of international services, e.g. fiscal services provided to overseas persons, and are thus nil-rated),
2. out-of-scope supplies, and
3. sale of capital assets (e.one thousand. sale of mechanism, equipment, office building and article of furniture).

If you are not liable for GST registration, you may cull to register voluntarily after conscientious consideration.

Y'all may also exist liable for GST registration under the Reverse charge and Overseas vendor registration regime. For more than information, please refer to the section on Reverse charge and overseas vendor registrationbelow.

All currency/ monetary amounts stated in this webpage refer to Singapore dollars.

Retrospective view

On or After ane Jan 2019

If your taxable turnover at the end of the agenda year is more than $1 million, you must register for GSTpast thirty Jan. You volition be registered for GSTon 1 Mar.

Yous are encouraged to employ the  GST Registration Calculator (from 2019) to assist you in determining your GST registration liability.

Example 1a: Retrospective view (on or after 1 January 2019)

Calendar twelvemonth with taxable turnover exceeding $1 1000000	Due date to apply for GST registration	Effective appointment of registration
one Jan to 31 December 20X1	thirty Jan 20X2	one Mar 20X2

Prior to 1 January 2019

If your taxable turnover at the end of the calendar quarter (i.due east. three months ending Mar, Jun, Sep or Dec) and the past 3 quarters is more than $i million, you lot must register for GST within 30 days from the engagement your liability to annals arose. You lot volition be registered on the showtime day of the third month following the end of the calendar quarter.

Y'all are encouraged to employ the  GST Registration Reckoner (prior to 2019) to assist you in determining your GST registration liability.

Instance 1b: Retrospective view (before 1 January 2019)

Taxable turnover exceeding $1 1000000	Due engagement to apply for GST registration	Effective date of registration
ane Apr to 31 Mar 20X1	30 Apr 20X1	1 Jun 20X1
ane Jul to 30 Jun 20X1	30 Jul 20X1	1 Sep 20X1
i Oct to thirty Sep 20X1	xxx Oct 20X1	1 Dec 20X1
1 Jan to 31 December 20X1	30 Jan 20X2	i Mar 20X2

Prospective view

At any bespeak in time, if you tin reasonably await your taxable turnover to bemore than $1 million in the adjacent 12 months, y'all must register for GST within 30 days from the date of your forecast and you will exist registered on the 31^st day from the forecast appointment.

Yous must have supporting documents to support your forecast value of $1 million. For example:

• Signed contracts or agreements
• Accepted quotations or confirmed purchase orders from customers
• Invoices to customers with fixed monthly fee charged
• Income statements showing that past 12-month period was already shut to $one meg and that annual turnover is on an increasing tendency

On the other hand, you are non required to register for GST if there is no certainty in your forecast. For example, you made a forecast based on market place cess, business concern plans or sales targets.

Example 2: Prospective view

Date of forecast	Due date to utilise for GST registration	Effective appointment of registration
Contract or agreement with more $ane million value signed on ane Jul 20X1	31 Jul 20X1	1 Aug 20X1
Quotation with more than than $one 1000000 value accustomed past client on 2 Sep 20X1	2 Oct 20X1	3 Oct 20X1
Past 12-month turnover as at 31 Dec 20X1 was $900,000. Equally turnover has increased by 15% on year-to-yr ground, turnover for adjacent 12 months projected to be more than $1 million on fifteen Jan 20X2.	fourteen Feb 20X2	15 Feb 20X2

Exception

You volition not be required to register for GST if:

  a. Your taxable turnover is derived wholly or mainly from aught-rated supplies and y'all apply for exemption from registration.

  b. You are liable for GST registration nether the retrospective view only not under the  prospective view and the following weather are met:

• You are certain that your taxable turnover for the adjacent 12 months volition not exceed South$1 million

• The taxable turnover is projected to be lower due to specific circumstances(e.grand. large-calibration downsizing of business)

• You have supporting documentation to substantiate your projection

 Y'all must yet continue to monitor your taxable turnover at the end of the side by side calendar year.

Specified circumstances

To support your position that you are non liable to annals nether retrospective view, y'all must maintain:

(a) Documentary evidences to evidence that the specified circumstances below use to y'all; and

(b) Detailed ciphering showing how the projected taxable turnover for the next 12 months volition not exceed $1million.

	Specified circumstances	Examples of supporting documents
one	Decease/termination of high-value sales contract from a major customer and yous are unlikely to enter into new sales contracts in the next 12 months	Sales contracts with details of the commencement and decease/termination dates Correspondence with customers on early termination of sales contract and testify and payment of any early on termination fees Correspondence with customers showing that whatsoever new sales contracts entered into in the subsequent 12 months were unsolicited and unexpected
two	Large-scale downsizing of business e.m. divestment of sure business concern lines, cessation of manufacturing activities, closure of retail shops/outlets, or relocation of concern activities to overseas	Notes of Board of Directors' meeting/directors' resolution (for corporate businesses) or management meetings (for non-corporate businesses) on decision Notification to employees or correspondence with tertiary parties informing them of the divestment, abeyance, closure or relocation Termination of lease of property arising from down-sizing
3	Revocation of business organization licence or termination of sales distribution rights	Notification from external parties on the revocation of licence or termination of rights Records showing by revenue brought in past activities that require the licence or rights
4	Abeyance of all business activities or preparation to wind upwards, dissolve or strike-off business concern	Notes of Lath of Directors' meeting/directors' resolution (for corporate businesses) or management meetings (for not-corporate businesses) on the decision ACRA business concern profile showing that the business has ceased, wound up, dissolved or struck-off Notification to employees, suppliers/customers or correspondence with third parties informing them of cessation, winding up, dissolving or striking-off of concern Termination of lease of property arising from cessation, winding upward, dissolving or hitting-off of business organization

Reverse charge and overseas vendor registration ^New!

You may likewise be liable for registration:

• under the contrary charge regime if your business procures services from overseas suppliers and your business is not entitled to total input tax credit fifty-fifty if it is GST-registered, or
• under the overseas vendor registration authorities if yous are an overseas supplier or a local/ overseas electronic marketplace operator that provides digital services to individuals and businesses in Singapore that are not registered for GST.

For more than information on the requirement to register for GST under these regimes, delight refer to our webpage on  GST on Imported Services.

Belatedly notification of liability for GST registration

There are serious consequences for tardily registration:

1. Your date of registration will exist backdated to the date you were liable for registration.
2. You will accept to business relationship for and pay GST on your past sales starting from the effective date of registration, even if you did not collect any GST from your customers.
3. You may face a fine of up to $10,000 and a penalty equal to 10% of the GST due. Prosecution action may apply.

If y'all submit an application for GST registration and voluntarily disclose that you are late in registration, we will generally waive the tardily notification fine and penalties. If y'all have difficulties paying the GST due on the backdated period, nosotros may let you lot to pay the GST due in instalments.

Calculating your business turnover

The tabular array below explains the dissimilar methods used to compute your concern taxable turnover, depending on whether you are a sole-proprietorship, a partnership, or a private express visitor.

	Sole-Proprietorship (Private)	Partnership	Company (e.g. Private Limited Company)
How do I compute business turnover?	Combine the turnover of: all your sole-proprietorship businesses, AND income derived from your trade, profession or vocation (e.g. a taxi driver, hawker, commission agent such as insurance amanuensis or multi-level marketing agent, freelancer such as fitness instructor or book-keeper, accountant with own business practice, etc.) Refer to example below for illustration.	Combine the turnover of all partnership businesses with the aforementioned limerick of partners. Please refer to example beneath for illustration.	Compute the turnover of that unmarried visitor. If your company (as a legal entity) owns sole-proprietorship businesses, you lot need to combine the turnover of the company, and all its sole-proprietorship businesses.
How will my businesses exist registered for GST?	All your businesses under your name will be registered in the name of the sole-proprietor (i.e. your name) irrespective of the turnover of each concern. This includes sole-proprietorship businesses which you lot may prepare in the future.	Each partnership business concern that is required to register for GST will exist separately registered under its own name. Once your partnership is GST-registered, all businesses with the same limerick of partners need to exist GST-registered. This includes businesses with the same composition of partners which you may set up in the hereafter.	GST registration will exist in the name of your company.

Instance i: Sole-Proprietorship

You lot have ii sole-proprietorship businesses (Businesses A and B). You likewise bulldoze a taxi on a part-fourth dimension basis.

In the past 12 months:

• Business A turnover is $500,000.
• Business organization B turnover is $490,000.
• Income derived from taxi driving is $thirty,000.

To compute your business organization turnover:

1. Combine the turnover for Business A, Business B and the income derived from taxi driving.
2. Total Turnover/Income: $500,000 + $490,000 + $xxx,000 = $i,020,000
3. The combined turnover (including the income from the taxi driving) exceeds $one 1000000.
4. You lot must annals for GST immediately if y'all can reasonably expect your total turnover to be more $i million for the next 12 months.

Instance two: Partnership

Scenario 1:

You and Mary own 2 partnership businesses (Businesses C and D). You also ain a partnership business (Business Eastward) with John.

In the past 12 months:

• Turnover of Business C is $200,000
• Turnover of Business D is $300,000
• Turnover of Business E is $600,000

To compute your business organisation turnover:

1. Combine turnover of all partnership businesses with the same composition of partners.
2. Combined Concern Turnover of Business organization C and D (which you lot ain with Mary) is $200,000 + $300,000 = $500,000, which is less than $1 meg.
3. You need not annals Businesses C and D for GST if you expect combined Concern Turnover to exist less than $1 one thousand thousand for the side by side 12 months.

You lot should calculate the business turnover for Business Due east separately because you have a different business partner - John. In this case, as the Business Turnover of Business concern E is less than $1 million ($500,000). you lot exercise non need to register Business E for GST.

Scenario 2:

You and Mary own two partnership businesses (Businesses C and D).

In the by 12 months:

• Turnover of Business concern C is $500,000
• Turnover of Business D is $600,000

To compute your concern turnover:

1. Combine turnover of all partnership businesses with the same composition of partners.
2. Combined Business organisation Turnover of Businesses C and D (which yous own with Mary) is $500,000 + $600,000 = $one,100,000, which exceeds $1 million.
3. You need to annals your partnership Businesses C and D for GST immediately if you reasonably expect your business organisation turnover to exist more than than $one million for the next 12 months.
4. Upon registration, each of your partnership businesses volition exist registered under their own individual GST registration number and you will need to file carve up GST returns for them.

Scenario 3:

You and Mary own two partnership businesses (Businesses C and D). You, Mary, and John also own ane partnership business (Business East).

In the past 12 months:

• Turnover of Business organization C is $200,000
• Turnover of Concern D is $300,000
• Turnover of Business organization E is $600,000

To compute your business turnover:

1. Combine turnover of all partnership businesses with the same composition of partners.
2. Combined Business Turnover of Businesses C and D (which you own with Mary) is $200,000 + $300,000 = $500,000, which is less than $ane million.
3. Y'all demand not register Businesses C and D for GST if you expect your business concern turnover to exist less than $i meg for the next 12 months.

You should calculate the concern turnover for Concern East separately, every bit the composition of partners of Business E (You, Mary and John) is different from that of Businesses C and D (You lot and Mary).

Case 3: Company

You are the director of company F which is operating a trading business selling appurtenances in Singapore. Y'all are also the manager of visitor Thou, which is in the concern of renting of commercial properties.

In the past 12 months:

• Turnover of Company F is $1,100,000
• Turnover of Company 1000 is $500,000

To compute your business turnover:

1. The turnover of Company F exceeds $ane million.
2. Company F must register for GST immediately if it reasonably expects its total turnover to be more than than $1 million for the adjacent 12 months.
3. The turnover of Company G is $500,000. Visitor G need not register for GST if it expects its total turnover to exist less than $1 million for the next 12 months.

FAQS

I run a property trading business organization in partnership with someone else. Do I need to include the gain from the sales of commercial backdrop that were held in the name of the partners as bare trustees of the partnership, when calculating my partnership's taxable turnover for GST registration purpose?

Yes, you take to include the gain from the auction of these commercial properties when computing your partnership's taxable turnover for GST registration purpose.

As your partnership is in the business of trading in properties, the backdrop held by the partners as bare trustees of the partnership are non capital assets of the business. The sales of commercial properties by the bare trustees are the taxable supplies fabricated by your partnership.

If I am late in my GST registration, can the requirement for backdating the constructive GST registration engagement and payment of backdated tax exist waived?

No. GST is a self-assessed taxation. Businesses are responsible to monitor their sales and register for GST in one case the annual taxable turnover exceeds S$1 million.

Yet, if you voluntarily disclose that you are late when you submit your GST registration after the due date, late notification fines and penalties will generally be waived.

If my effective date of registration is backdated due to belatedly notification, can I recover the GST on the by sales from customers?

It depends on the terms of agreement with your client. If your customer agrees to pay the GST for the backdated catamenia, yous may consequence a credit note to cancel the original invoice and issue a tax invoice with GST to your client.

If you take issued more than one invoiceto the same customer, as an administrative concession, yous may upshot a tax invoice to your client,stating the invoice numbers of all the original invoices andshowing merely the GST corporeality. The credit note and new tax invoice should state the date when the credit note and new tax invoice are issued.

If yourcustomers who are GST-registered and satisfy the input revenue enhancement claiming conditions, they may claimthe GST paid to you as their input tax.

I acquired a business that is GST-registered, can I continue to use the GST registration number of the business?

You are not allowed to use the same GST registration number.

Y'all must abolish the GST registration of the business that you caused, as it would have ceased to exist.

If you are liable for GST registration after the acquisition or change in business constitution, you must apply for GST registration.

I take changed my concern constitution, (e.g. converted from partnership to company, from sole-proprietorship to partnership, or vice versa), can I continue to use the same GST registration number?

Yous are non allowed to use theGST registration number of the sometime business concern constitution.

You must abolish the GST registration of old business constitution, as it would take ceased to exist.

If you are liable for GST registration afterchange in business constitution, y'all must apply for GST registration.

When I acquire a business, do I have to register for GST as a consequence of the acquisition?

If yous acquired a business,you lot have to include the taxable turnover of that businessto determine your liability to register for GST.

If you are liable for GST registration after the acquisition, yousmust submit an awarding for GST registration within 30 days from the date of transfer of the acquired business. Your effective date of GST registration will be the date of transfer.

Withal, if you are sure at the fourth dimension of transfer of business that your taxable turnover for the next 12 months will not exceed $one million, you lot will non exist required to register for GST.

If I am a director, do I need to annals for GST?

If yous are an executive director, yous are not liable to annals for GST since you are providing the directorship services in the course of your employment.

If you lot are a not-executive director, you may be liable to annals for GST if:

-Yous are the supplier of the directorship services; and

-You provide the directorship services in the course or furtherance of a business organization. The business concern tests tin can be used to determine whether you are conveying on a business with the provision of the directorship services.

Can I split my business into multiple entities (each with taxable turnover not exceeding $ane million) to avoid registering for GST?

If we determine that the purpose or effect of splitting the business into multiple entities is to avoid GST registration, nosotros may disregard such an arrangement and register your entire business for GST with effect from the date you are liable for GST registration.

You lot volition then need to account for GST on all past transactions made from that date of registration, even though you may not have collected GST from your customers.

7. Under What Circumstances Must A Business Register For Gst?,

Source: https://www.iras.gov.sg/taxes/goods-services-tax-(gst)/gst-registration-deregistration/do-i-need-to-register-for-gst

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