Businesses in Singapore must register for GST once their annual taxable turnover exceeds S$1 million. However, GST registration is not always permanent. Businesses that cease operations, transfer ownership, undergo restructuring, or no longer meet GST registration requirements may need to deregister with the Inland Revenue Authority of Singapore (IRAS).
Deregistration involves more than simply cancelling a GST number. In certain situations, businesses are required to apply within 30 days of the relevant event. They may also need to complete outstanding GST filings, review the GST treatment of business assets, and meet other IRAS requirements before deregistration can take effect.
In this guide, we explain when GST deregistration is required, who is eligible, and the steps businesses should follow to complete the process in Singapore.
What is GST Deregistration in Singapore?
GST deregistration is the process of cancelling a business's GST registration with the Inland Revenue Authority of Singapore (IRAS). Once the deregistration takes effect, the business can no longer charge GST on taxable sales or claim GST on purchases and expenses.
Depending on the circumstances, deregistration may be compulsory or voluntary. However, it is not automatic. Businesses must apply to IRAS and continue meeting their GST obligations until the effective date of deregistration is confirmed.
When Must a Business Deregister for GST?
Businesses must deregister for GST when they no longer meet the requirements for GST registration. In cases of compulsory deregistration, an application should generally be submitted to IRAS within 30 days of the relevant event.
Deregistration may be required when:
- Business operations have ceased permanently.
- Ownership has been transferred to another party.
- The business structure has changed.
- Taxable supplies are no longer being made in Singapore.
Businesses that fail to apply for compulsory deregistration may continue to have GST filing and compliance obligations until their registration is cancelled by IRAS.
Compulsory vs Voluntary GST Deregistration
Businesses may deregister for GST either compulsorily or voluntarily, depending on their circumstances.
|
Type |
When it Applies |
|
Compulsory Deregistration |
Businesses are required to deregister when they cease operations, transfer ownership, change their legal structure, or no longer make taxable supplies in Singapore. |
|
Voluntary Deregistration |
Businesses may apply for deregistration when taxable turnover falls below the S$1 million registration threshold and is not expected to exceed that amount in the next 12 months. |
Businesses applying for voluntary deregistration must demonstrate that they no longer need to remain GST-registered and satisfy any conditions imposed by IRAS.
GST Deregistration Requirements in Singapore
Before applying for GST deregistration, businesses should ensure they meet the relevant IRAS requirements.
Depending on the type of deregistration, this may include:
- Taxable turnover falling below the S$1 million registration threshold and not being expected to exceed that amount in the next 12 months.
- Completing all outstanding GST returns and compliance obligations.
- Reviewing any GST implications relating to business assets held at the date of deregistration.
- Ensuring the reason for deregistration meets IRAS requirements, such as business cessation, transfer of ownership, or a change in business structure.
- Providing any supporting information requested by IRAS during the application process.
Businesses should review their GST position carefully before submitting an application, as IRAS may request additional information before approving the deregistration.
How to Deregister for GST in Singapore: Step-by-Step Process
Step 1: Determine Your Eligibility
Start by determining whether your deregistration is compulsory or voluntary. Review your business activities, taxable turnover, and GST registration status to ensure you meet the relevant IRAS requirements.
Step 2: Review Outstanding GST Obligations
Before applying, ensure all GST returns have been submitted and any outstanding GST matters have been addressed. This can help prevent delays during the review process.
Step 3: Assess Business Assets
Review any business assets held on the date of deregistration. Depending on the circumstances, IRAS may require GST to be accounted for on certain taxable assets.
Step 4: Submit Your Application
Applications can be submitted online through the myTax Portal. Businesses should provide accurate information and supporting details when completing the application.
Step 5: Respond to IRAS Queries
IRAS may request additional information or supporting documents while reviewing the application. Responding promptly can help keep the process moving smoothly.
Step 6: Receive IRAS Approval
Once the application is approved, IRAS will notify the business of the effective date of GST deregistration. GST obligations remain in place until this date.
Step 7: Complete Final GST Requirements
After deregistration is approved, businesses still need to submit a final GST return (GST F8) and fulfil any remaining GST obligations required by IRAS. Businesses must submit GST F8 and account for GST within 1 month from the end of the prescribed accounting period stated on the return, file all outstanding GST returns and make any outstanding GST payment.
What Happens After GST Deregistration?
Once GST deregistration takes effect, the business is no longer treated as a GST-registered entity. This affects how GST is charged, claimed, and reported going forward.
| Area | What changes after DeRegistration |
| GST Collection | GST can no longer be charged on taxable goods and services. |
| GST Claims | GST incurred on business purchases and expenses can no longer be claimed. |
| Tax Invoices | GST tax invoices can no longer be issued to customers. |
| GST Returns | Regular GST returns are no longer required after all final GST obligations have been completed. |
| GST Registration Number | The GST registration is cancelled and can no longer be used for business transactions. |
Businesses should also retain their records and documents for the required retention period, even after GST deregistration has been approved.
Common GST Deregistration Mistakes to Avoid
Deregistration is usually a straightforward process, but certain oversights can result in delays or additional compliance obligations. Before submitting an application, businesses should avoid the following mistakes:
- Assuming registration is cancelled automatically after business operations cease.
- Delaying the application after becoming eligible for compulsory deregistration.
- Applying before all outstanding returns and filings have been completed.
- Failing to review the tax treatment of business assets held at the date of deregistration.
- Continuing to charge GST after the effective date of deregistration.
- Discarding accounting records and supporting documents too early.
Reviewing your GST obligations before submitting an application can help ensure a smoother deregistration process and reduce the risk of compliance issues.
Where to Next?
GST deregistration is not just an administrative formality. Businesses must ensure they meet the relevant IRAS requirements, address any outstanding compliance obligations, and review the tax treatment of business assets before their registration can be cancelled.
At Ascentium, we help businesses navigate GST deregistration, compliance reviews, and ongoing tax obligations in Singapore. Whether you are closing a business, restructuring operations, or reassessing your registration requirements, our team can help ensure the process is completed accurately and in line with IRAS requirements.
