Applying for exemption from GST registration

If your annual taxable turnover exceeds S$1 million, you must register for GST. However, you may apply for exemption from registration if you meet both the conditions below: 

• The proportion of your zero-rated supplies over total taxable supplies exceeds 90%
  
  Total taxable supplies refer to the summation of standard-rated supplies and zero-rated supplies, but exclude the following: 
  
  • The value of relevant supplies received from your supplier that were subject to customer accounting; and

  • The value of imported services subject to reverse charge .

• You would be in a net refundable position had you been GST-registered
  
  Net refundable position refers to a situation where the output tax chargeable is less than the input tax claimable on imports and/or purchases from GST-registered suppliers

Upon approval of your exemption application, you do not need to collect GST on your sales nor file GST returns. However, you will not be able to claim the GST incurred on your business purchases of goods and services.

To apply for exemption, please complete the form GST F2 "Application for Exemption from Registration" (PDF, 309KB) and submit it together with all the required documents stated in the form. 

After being exempted from GST registration, you must continue monitoring your transactions to ensure that you continue to meet the conditions for exemption. If you cease to qualify for exemption and your annual taxable turnover exceeds S$1 million, you are required to notify us within 30 days so that we can register you for GST.

You would cease to qualify for exemption if any of the following situations arise:

• At the end of any calendar quarter,
  • The proportion of your zero-rated supplies over total taxable supplies (as defined above) drops to 90% or below in that quarter
  • For the previous 12-month period, you would be in a net GST payable position had you been GST-registered
• At any point in time, you stop making zero-rated supplies, and are making standard-rated supplies, exempt supplies and/ or out-of-scope supplies.

To notify us, send us an email via mytax.iras.gov.sg with the following information:

1. Date when the situations (a) or (b) in the above paragraph arose (“date of change”)
2. All amounts stated below for the previous 12 months up to the date of change, and the amounts expected for next 12 months from the date of change
   • Value of standard-rated supplies
   • Value of zero-rated supplies
   • Net GST position had you been registered for GST
   • Value of imported services (if you would not have been entitled to full input tax claims had you been registered for GST)

Failure to notify us that you no longer qualify for exemption is an offence that may attract penalties.