GST registration can be cancelled voluntarily, or the company may be asked under certain conditions.
1. Compulsory cancellation
It is a mandatory requirement to cancel the GST registration within a thirty-day timeframe in the following situations:
a) Your business has ceased trading.
b) Your business no longer makes taxable supplies and is not likely to change in the future.
c) Your business is transferred in full to a third party (the new owner is responsible for registering for GST).
d) Your business structure has been changed (ie from a partnership to a sole proprietorship or vice versa) and the new entity must determine its future needs.
2. Voluntary cancellation
The GST registration may be voluntarily cancelled when the taxable income for the following 12 month period is expected to be SGD 1 million or less, and the company is not under the voluntary registration for two years or less.
3. Apply for cancellation
The process to apply for GST registration cancellation is possible via an online application form. The form is processed by IRAS within 10 working days. A confirmation of approval is issued on the day the cancellation application is received.
4. Notification of cancellation
The actual cancellation date of the GST registration is issued once the application has been approved. Once the cancellation is complete, the company must discontinue collecting or charging GST.
Any approved statuses related to GST registration will be automatically ceased once the cancellation application is approved.
It is essential to continue to abide by all obligations that a GST-registered company is responsible for such as submitting GST returns and charging GST until the final day of GST deregistration.
A GST F8 form is issued, which is the final GST return, must be filed and records all relevant information up to the final day of GST deregistration.
A business must submit the completed GST F8 form within a one month period from the final accounting period noted on the GST return. Any GST payments or returns that are outstanding must be settled.
When completing the GST F8 form, it is necessary to account for output tax on inventories and capital assets that are still available on the final day of GST deregistration.
The GST should be based on the open market value to represent the value of these assets that could be sold for on the final day of GST deregistration.
5. Record keeping
The record keeping requirements for GST is to maintain detailed transaction records for five years.
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