Compulsory Cancellation of GST Registration

You must cancel your GST registration within 30 days when:

  1. You stopped making taxable supplies and do not intend to make taxable supplies in future;
  2. Your business has ceased;
  3. Your business is transferred as a whole to another person (the new entity needs to determine if it is required to register for GST); or
  4. Your business constitution has changed (e.g. sole-proprietorship business converted to a partnership or vice versa, partnership converted to limited liability partnership, etc).The new entity needs to determine if it is required to register for GST.

Voluntary Cancellation of GST Registration

You may choose to cancel your GST registration if you are not liable for registration. However, if you were previously registered on voluntary basis, you must remain registered for at least 2 years before you can cancel your registration.

Example 1: Cancellation of registration

Company A Past 4 quartersNext 12 months
 Taxable Turnover $600,000$500,000 

You may cancel your GST registration. However, if you were previously registered under a voluntary basis, you are required to remain registered for at least 2 years before you can cancel your registration.

Example 2: Cancellation of registration

 Company B Past 4 quarters Next 12 months
 Taxable turnover$1,200,000 $500,000 

You may cancel your GST registration if you are certain that the taxable turnover for next 12 months will be $1 million or less due to specific circumstances such as termination of a high value sale contract from a major customer or large-scale downsizing of business. You will have to substantiate your basis of projection with supporting documentation. Examples of the supporting documents required are provided in the e-Tax Guide “Do I need to register?”. 

However, if you were previously registered under a voluntary basis, you are required to remain registered for at least 2 years before you can cancel your registration.

 

 

Applying for Cancellation

The person authorised to access myTax Portal to submit GST returns can log in to myTax Portal to apply for cancellation of GST registration online.

We usually take 1 to 10 working days to process the online applications. Most cases will receive a confirmation of approval on the day of application.

Effective Date of Cancellation

You will be notified of the approval for your application and the effective date of cancellation of GST registration.

With effect from the date of cancellation:

  • You should not charge or collect GST as it is an offence to do so. 
  • You should not be issuing tax invoices. If you have any existing pre-printed tax invoices, add the remarks "GST cancelled with effect from (date)" and cancel your GST registration number and the words "Tax Invoice".
  • If you were approved to operate the Tourist Refund Scheme (eTRS), you should also update your Central Refund Agency on the cancellation of your GST registration and stop issuing eTRS tickets.
  • You will have to pay GST to Singapore Customs when you import goods as you will not be eligible for any of the following schemes:  
    • Major Exporter Scheme (MES)
    • Import GST Deferment Scheme (IGDS)
    • Approved Third Party Logistics (3PL) Scheme
    • Approved Contract Manufacturer and Trader (ACMT) Scheme
    • Approved Import GST Suspension Scheme (AISS)
    • Approved Refiner and Consolidator Scheme (ARCS)

Please refer to the e-Tax Guides on these schemes for more details on the implications of cancelling your GST registration.

You have to continue to fulfil your obligations as a GST-registered person (e.g. charge GST, submit GST returns) until the last day of the GST registration, which is one day before the effective date of cancellation of GST registration.

Filing Your Final GST Return (GST F8)

A final GST return (GST F8) will be issued to you to file and account for GST up till the last day of the GST registration, which is one day before the effective date of cancellation of GST registration.

You are required to:

  1. Submit the GST F8 and account for GST within one month from the end of the prescribed accounting period stated on the return; and
  2. Settle all outstanding GST returns and payment, if any.

You are under monthly filing frequency and your effective date of cancellation is 1 Jan 2017. The GST F8 will be issued for the period of 1 Dec 2016 to 31 Dec 2016 and you have to submit by 31 Jan 2017.

Accounting for GST Assets in the Final GST F8

In your final GST return (GST F8), you need to account for output tax (at the prevailing rate) on the following business assets held on the last day of registration if their total value exceeds $10,000:

  • assets on which input tax has been claimed; and 
  • any assets which were obtained by you as part of business assets transferred to you as a going concern from a GST-registered person.

Input tax is deemed as claimed for goods imported under import GST suspension schemes such as the Major Exporter Scheme (MES) or Approved Third Party Logistics Company Scheme status (A3PL).

Business assets include:

  • Non-residential properties; 
  • Fixed assets (such as computers, machinery and vehicles); and
  • Unsold inventory. 

The value of assets refers to the price of a similar, if not identical, asset of the same condition that could be purchased from the open market.

Exceptions:

You are not required to account for output tax on all the business assets held on the last day of registration under the following scenarios:

  1. The total value of the following business assets is $10,000 or less 
    • assets on which input tax has been claimed; and
    • any assets which were obtained by you as assets transferred to you as a going concern from a GST-registered person; 
  2. You have transferred the whole business as a going concern to another GST-registered business. 

For GST purposes, all currency/monetary amounts refer to Singapore dollars.

You purchased an asset at S$100,000 on 1 Apr 2013 and claimed input tax of S$7,000 in your GST return. On the last day of your GST registration, the same asset can be purchased at a price of $120,000. Hence, you will have to account for output tax of S$8,400 (i.e. 7% of S$120,000) in your GST F8.

 

Record Keeping Requirements

You are also required to maintain proper records of all transactions for at least 5 years.

  • I am not making any sales but I am still GST-registered. Do I need to submit my GST returns?

    As long as you are GST-registered, you are required to submit GST returns.

    When you do not have any business transactions for the accounting period covered in your GST return, you should submit a Nil return (i.e. fill in "0" in the boxes).

    When you have ceased your business and you have stopped making taxable supplies, please apply for cancellation of GST registration online via myTax Portal .

  • I am a sole-proprietor registered under compulsory basis. The sales of my sole-proprietorship business for the past 4 quarters has reduced to less than $1 million. Can I cancel my GST registration?

    You can apply for cancellation of GST registration via myTax Portal if your total taxable turnover will be less than $1 million in the next 12 months.

    For a sole-proprietor, your total taxable turnover includes:

    • 1. Turnover of all your sole-proprietorship business(es); and 
    • 2. Income from any profession or vocation that you carry on as a self-employed person such as taxi driver, hawker, commission agent (e.g. insurance agent, real estate agent or multi-level marketing agent), freelancer (e.g. fitness instructor or book-keeper, accountant with own business practice, etc.)
  • I own two GST-registered partnership businesses of which my wife and I are the partners. We are certain that both of the partnership businesses will be making less than S$1 million in the next 12 months. Can I cancel my GST registration?

    You may apply for cancellation of GST registration via myTax Portal if the combined taxable turnover of both partnership businesses will be less than S$1 million in the next 12 months. 

    The GST registration of both partnership businesses will be cancelled. You cannot choose to cancel only one of your partnership businesses as they are both owned by the same composition of partners (in this case, you and your wife).

     

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