Accounting Solutions Singapore Editorial Team · Last reviewed 18 October 2026
Passing S$1 million in taxable turnover normally means you have to register for GST. There are two situations where IRAS may let you stay unregistered. One is for businesses that mainly make zero-rated supplies, such as exporters. The other is for businesses whose turnover jumped because of something temporary. Neither is automatic. You have to apply, and IRAS has to agree.
For the basic rules on when registration is required, see applying for GST registration.
At a glance
| Question | Short answer |
|---|---|
| Who can apply? | Businesses liable to register that (1) make or expect to make mainly zero-rated supplies, or (2) are liable only on past turnover and are certain the next 12 months will be under S$1 million |
| Is it automatic? | No. You apply to IRAS and wait for approval |
| What counts as zero-rated? | Mainly exports of goods and international services |
| The catch | If you’re not registered, you can’t claim input tax on your purchases |
| After approval | You still need to watch your turnover |
Route 1: Mainly zero-rated supplies
If you are liable to register but make, or intend to make, mainly zero-rated supplies, you may apply for exemption. Zero-rated supplies are exports of goods and international services. If you charge GST at 0% on almost everything you sell, registration would mean filing returns that nearly always show a refund, so IRAS lets qualifying businesses skip it.
This is a narrow exception, not a general opt-out. IRAS’s wording is “mainly” zero-rated, and having a lot of export revenue does not exempt you. You have to apply and be approved. Until you are, registration rules apply as normal.
Route 2: A temporary jump in turnover
You can also be liable to register because of what you sold in the past, even though you are sure it won’t continue. IRAS may exempt you if all of these are true:
- You are liable to register on the past-turnover view only, not on the forward-looking view.
- You are certain your taxable turnover for the next 12 months will not go above S$1 million.
- The lower figure comes from specific circumstances, such as a large-scale downsizing or a high-value contract with a major customer coming to an end.
- You have documents that support the projection, such as sales contracts showing start and end dates, and a calculation of your projected turnover.
Even once exempt under this route, you must carry on monitoring your taxable turnover, and check it again at the end of the next calendar year.
Should you apply?
Exemption means no registration, no returns and no GST charged. It also means you can’t claim input tax, because only GST-registered businesses can. For an exporter that buys goods and services locally, that GST becomes a cost.
Example (illustration only). ABC Pte Ltd exports all its goods. Its taxable turnover is S$1.5 million, all zero-rated. It pays S$36,000 of GST on local purchases in a year.
| Descriptions | If ABC registers | If ABC is exempt |
|---|---|---|
| Output tax on sales | S$0 | Not applicable |
| Input tax on purchases | S$36,000 claimed | Cannot claim |
| Result | Refund of about S$36,000 | S$36,000 stays as a cost |
| Admin | Quarterly or monthly F5 returns | None |
For ABC, exemption saves the filing work but costs S$36,000 a year. Registration, with a steady refund, may suit it better. For an exporter that buys very little locally, the numbers can go the other way.
Example (illustration only). DEF Pte Ltd had taxable turnover of S$1.3 million in calendar year 2026, mainly from one contract that ended in October. It has no other large orders and expects S$600,000 over the next 12 months. DEF may qualify under Route 2 if it can show the contract’s end date and its projection.
What an application involves
- Work out your supply mix, or your forecast. Which route fits, and the figures for it.
- Gather the evidence. For Route 1, a breakdown of your revenue by type of supply. For Route 2, the contracts, forecast and calculation above.
- Apply to IRAS and wait for its decision.
- Keep reviewing. If your business changes, for example you start selling more to local customers, the position can change. Review your supply mix and turnover regularly rather than assuming the exemption holds forever.
Who this is for
- Exporters and international service providers near or over S$1 million
- Businesses whose turnover spiked because of a one-off project or contract
- Businesses deciding between exemption and voluntary registration for input tax
Questions we get asked
Can I just not register if most of my sales are exports? No. You are still liable until IRAS approves an exemption.
Does exemption mean I can’t charge GST at all? Yes. You are not registered, so you can’t charge it, and you can’t claim input tax.
Can I register anyway to get my input tax back? Registration is possible if you meet IRAS’s conditions for voluntary registration, but be aware of the two-year minimum and the InvoiceNow requirement for new voluntary registrants. Our page on the GST InvoiceNow requirement explains it.
See if you can apply for exemption
Send us your last 12 months of sales broken down by type, and what you expect next year. We’ll tell you whether exemption looks possible and whether it would actually save you money. See if you can apply for exemption. Related: GST services overview and GST compliance filing.
Sources
- IRAS, Applying for exemption from GST registration (summary line only; page body would not load)
- ISCA Chartered Accountants Lab (contributed by IRAS), Understanding GST registration obligations (14 October 2025)
- IRAS, GST: General Guide for Businesses
This page is general information as at the date above, not legal, regulatory or professional advice. Rules change, so please take advice on your own circumstances before acting.