Guide to GST deregistration in Singapore: Process and requirements

You may want or need to deregister for GST if your business taxable turnover drops, you change entity type, or if you cease trading in Singapore entirely.

In this guide we’ll walk through how to deregister GST in Singapore, and when it may be necessary. We’ll also touch on Wise Business as a smart solution for businesses ceasing trading in Singapore and moving operations elsewhere, with mid-market rate currency conversion and low cost transfers.

What does it mean to deregister GST in Singapore

If you’re trading in Singapore, understanding GST registration and deregistration¹ is crucial. You’ll need to register for GST if your business taxable turnover is (or is likely to be in the next 12 months) over 1 million SGD. You can also register for GST voluntarily if your turnover is below this threshold².

As long as you’re registered for GST you must fulfil your GST requirements, including displaying customer prices including GST, collecting and accounting for GST, and filing GST returns on time³.

If your business circumstances change, you may need to de-register for GST⁴ - that is, change your IRAS information to reflect the fact that your business is no longer required to manage GST in Singapore.

In some cases you can deregister from GST voluntarily, and in others this is a mandatory step. This process is completed online and can be approved fairly quickly when it’s a simple case.

Why would a business need to deregister for GST?

You may need to deregister for GST in Singapore as a mandatory requirement if any of the following applies:

• Your company has stopped making taxable supplies and won’t do so again in future
• Your company has stopped trading entirely
• You’ve transferred ownership of your business to someone else
• The form of your company has changed - for example, you’ve changed from being a sole proprietor to having a private limited company

If these scenarios occur you need to apply for GST deregistration within 30 days - this is compulsory.

You may also choose to deregister voluntarily - for example if you registered for GST but have not made sales recently. In this case you would still need to complete GST filings as a nil return. As this can create unnecessary administration, it may be an idea to deregister - although it’s not necessarily the right choice in all cases. More on that next.

Voluntary vs. Mandatory Deregistration

The reasons laid out in the points above would trigger a requirement for mandatory GST deregistration. However, you might be wondering: can I deregister for GST based on a drop in taxable turnover?

If you’re anticipating that your company taxable turnover will drop below 1 million SGD you may be able to apply to deregister from GST. However, if you registered for GST voluntarily in the first place, you can not deregister until you have completed two years as a GST registered business.

Think carefully before deregistering on a voluntary basis - if your taxable turnover has simply dipped temporarily but then rises above the 1 million SGD mark again, you’d need to re-register later. This can add unnecessary administration hassle and be a distraction from managing your business.

Process of Deregistering GST in Singapore

You’ll need to deregister for GST on the IRAS myTax Portal website. IRAS states that most applications are approved on the same day, although there are some occasions where applications may take up to 10 days to be assessed.

Once your application is approved you’ll be notified of the effective date of cancellation. From this date you must not charge or collect GST, or issue tax invoices. You’ll need to pay GST to Singapore Customs when you import goods on behalf of your business.

You must complete and file a final GST return (GST F8) within one month, as well as filing any outstanding GST returns and making any remaining owed payments. Detailed guidance on completing the GST F8 form is available on the IRAS website, or by calling the service to ask for support.

Things to consider when deregistering GST

When you deregister for GST there are several important steps to make sure everything goes smoothly. Some businesses get the support of a professional tax accountant to guide them through this process and to lighten the load.

We’ve summarised some important things to remember below - but don’t forget, this guide is for information only and can’t replace individual advice from a tax professional.

• You must continue to fulfil your responsibilities as a GST business up to the last day of your GST registration - the day before the effective GST cancellation date.
• You need to complete and file your GST F8 within a month of the end of the prescribed accounting period stated on the return - make sure you’ve checked the dates your filing is due carefully.
• Your GST F8 is different to standard filings as it requires you to account for GST on business assets on the last day of your registration, and for goods/services delivered prior to cancellation but billed after cancellation. Specific rules apply on these filing requirements, so read the details on the IRAS website before you file.
• Maintain all records of your business transactions for at least 5 years.
• Remember that IRAS GST penalties can apply for late payment or failure to pay GST. These can be 5% of unpaid tax for late payments, with an additional 2% tax from 60 days after the due date. In total, penalties could be up to 50% of the outstanding tax, so keep on top of payments to avoid issues.

Closing your Singapore business? Wise Business can help with cross border payments

If you’re deregistering GST in Singapore because you’re ceasing trading, you may need efficient ways to move your SGD business funds into another currency. Wise Business account can help.

Wise Business serves as an alternative to traditional business account as you can hold, send, receive and exchange 40+ currencies all in one place. You’ll always get the mid-market rate with low, transparent fees. Even better, you can connect Wise Business cards to your account to control team spending in real time and reduce admin.

Here's what you get with a Wise Business account:

• Hold and manage 40+ currencies for all your international transactions.
• Get account details to receive in 8+ currencies for a one-time fee of 99 SGD
• Pay foreign currency bills and ad-hoc business travel expenses using the Wise Business card without hefty foreign transaction fees.
• Get your first Wise Business card for free when you open a Wise Business account.
• Always get the mid-market rate with transparent conversion fees.
• Seamless integrations with popular accounting software.
• Earn a variable return** on SGD, GBP, EUR, and USD through Wise Interest

➡️Get started with Wise Business today

** Growth is not guaranteed. Capital at risk.

Frequently Asked Questions About Deregistering GST

1. How do I deregister for GST in Singapore if my business has ceased operations?
The person responsible for GST filings can also deregister for GST on the IRAS myTax Portal website. Applications may take as little as a few hours to 10 days to be processed and you’ll then need to complete your final GST filing using form GST F8.

2. What happens to my business's GST credits when I deregister?
When you deregister GST in Singapore you’ll need to settle any outstanding GST matters as soon as possible. All final GST matters, including claiming unused credits, will be settled in the final GST F8 form if not before. Once this process is complete you can’t make further GST claims.

3. Can I deregister for GST if I only have a small amount of taxable turnover?
You may be able to apply for GST deregistration if your business taxable turnover drops below the threshold for GST (1 million SGD at the time of writing). However, if you registered voluntarily in the first place you can't deregister until you have been GST registered for 2 full years.

4. How long does the GST deregistration process typically take in Singapore?
You can apply to deregister GST online on the IRAS tax portal. IRAS can approve some applications on the same day - or it may take up to 10 days to complete. Once approved you’re issued an effective date of cancellation and must complete your final GST filing shortly after that.

Sources:

1. IRAS - GST registration and deregistration
2. IRAS - do I need to register for GST?
3. IRAS - responsibilities of GST businesses
4. IRAS - cancelling GST registration