You may apply for voluntary GST registration even if you are currently not liable for compulsory registration.
Criteria for voluntary GST registration
- You carry on a business and intend to make taxable supplies, or
- You make taxable supplies and your annual taxable turnover is not more than $1 million, or
- You only supply goods outside Singapore (out-of-scope supplies), or
- You make exempt supplies of financial services that are also deemed as international services
For further information on each criterion, please refer to the e-tax guide "Do I Need to Register?" (208KB).
Requirements for voluntary GST registration
Before registration
- Be on GIRO Scheme for payment and/or refund of GST; and
- Provide the security deposit as may be imposed by the Comptroller on a case-by-case basis.
- A director of the company/ sole-proprietor/ partner/ trustee has to complete the e-Learning course “GST-Before I Register” and its quiz before submitting the registration form (paper/ online). Your particulars(business name, business reference number, your name and designation) will be requested for submission to IRAS at the end of the course.
This 20-minute course includes the following information:
- Responsibilities and obligations of a GST registered business;
- Factors to consider before registering voluntarily; and
- Conditions for voluntary registration (e.g. the need to remain registered for at least 2 years).
After registration
- Complete the course "Introduction to GST" within three months from the effective date of registration. You can choose to complete the course via e-Learning or seminar by IRAS.
- Remain GST-registered for at least two years.
- Comply fully with the Responsibilities and Obligations of a GST-registered person and any other conditions as may be imposed by the Comptroller.
Please review the Responsibilities and Obligations of a GST-registered person carefully.
Important information for voluntary registration
After going through the Responsibilities and Obligations, please do a cost-benefit analysis before applying for GST registration.
Do note that the administrative cost of being GST-registered may outweigh the benefits. For example, you need to consider the cash flow outlay you may face as you would have to account for and pay GST to the Comptroller even if you have not received payment from your customers. It is advisable to have a full-time accounting staff or engage professional accounting service.
Should your intention to make taxable supplies fail to materialise and the Comptroller is not satisfied that you have firm intention to make taxable supplies from the start, the input tax you have claimed previously may be withdrawn.
FAQs
The retrospective and prospective bases are only relevant in determining whether you need to compulsorily register for GST.
We want to help businesses make informed decisions before registering for GST. Many businesses have the misconception that GST registration is part of setting up business and are unaware of the compliance costs associated with being GST-registered. There have been instances where newly GST-registered businesses requested the cancellation of GST within three months of registration after realising the administrative costs outweigh the benefits of being GST-registered.
GST registration is compulsory only for businesses that are currently making taxable supplies and with annual turnover more than or expected to be more than $1 million. For businesses not liable for GST registration but opt for voluntary registration, they need to be fully aware of the consequences of GST registration.
The conditions are part of the Comptroller's efforts to assist GST-registered businesses in meeting their responsibilities and obligations. The compulsory seminar "Introduction to GST" will equip business owners and GST preparers with basic knowledge of GST. Payment via GIRO will help businesses improve their cash flow as the deduction date falls on the 15th of the month after the GST returns are due. GIRO also helps businesses ensure they are timely in their tax payments and consequently, they can receive their GST refunds promptly.