Closing a business, restructuring it or watching turnover fall well below the registration threshold all raise the same question: what happens to your GST registration? This guide on GST considerations when closing or deregistering a business in Singapore explains when cancellation is compulsory, when it is optional, and what IRAS still expects from you after the registration ends.
GST deregistration is not automatic. Striking a company off the ACRA register does not cancel its GST registration, and cancelling GST does not close the company. The GST side has its own deadlines, a final return and, often, a tax charge on assets still held.
Who this applies to
These rules apply to any GST-registered business in Singapore that is winding down or changing shape. Typical situations include:
- A private limited company that has ceased trading and plans to apply for striking off or go through a members’ voluntary winding up
- A sole proprietorship or partnership that is converting into a company, which is a new legal entity with its own GST position
- A business that has been sold or transferred in whole to another party
- A company whose taxable turnover has dropped and is expected to stay at or below SGD 1 million for the next 12 months
Key rules and requirements in Singapore
Compulsory cancellation
You must apply to IRAS to cancel your GST registration within 30 days if the business has ceased, has stopped making taxable supplies, has been sold or transferred, or has changed its legal structure. Missing this deadline can lead to penalties.
Voluntary cancellation
If you are no longer liable to be registered, you may apply to cancel when your taxable turnover for the next 12 months is expected to be SGD 1 million or less. There is one important condition. A business that registered voluntarily must remain registered for at least two years before it can apply to cancel.
The final GST return (GST F8)
Once cancellation is approved, IRAS issues a final GST return, the GST F8. It covers the period up to the last day of registration, which is the day before the effective date of cancellation. The F8 must be filed, and any GST due paid, within one month from the end of that final accounting period.
GST on business assets held at cancellation
This is the rule most often overlooked. In the F8, you must account for output tax at the prevailing rate (currently 9%) on business assets you still hold on the last day of registration, if their total open market value exceeds SGD 10,000. The rule covers assets on which input tax was claimed when they were bought, and assets acquired as part of a business transferred to you as a going concern. Fixed assets, non-residential property and remaining stock can all fall within scope. The value used is open market value on that date, not the original cost.
Record keeping
Deregistration does not end your record keeping obligations. GST records, including tax invoices, import documents, asset valuations and the final F8, should be kept for at least five years, as IRAS can still review past returns after the registration has been cancelled.
Step-by-step process
- Confirm the trigger and the date. Identify whether cancellation is compulsory or voluntary, and the date the business stopped making taxable supplies. That date starts the 30-day clock.
- Apply through the IRAS myTax Portal. Log in with Corppass, select the GST cancellation service, state the reason and proposed effective date, and attach supporting documents where IRAS asks for them.
- Keep charging and reporting GST until the effective date. Until IRAS confirms cancellation, the business remains registered. Continue to issue tax invoices and file GST F5 returns as normal.
- Prepare an asset and stock listing. List every asset on which input tax was claimed, with an open market value as at the last day of registration, and total it to see whether the SGD 10,000 threshold is crossed.
- File the F8 and pay any GST due within one month after the end of the final accounting period.
- Update invoices and systems. Remove your GST registration number from invoices, quotations, websites and accounting software after the effective date. Charging GST when you are not registered is an offence.
- Coordinate with the ACRA process. If the company is being struck off through the ACRA BizFile+ portal, make sure GST, corporate income tax and CPF matters are settled first, as outstanding obligations with government agencies can hold up the application.
Common mistakes to avoid
- Assuming that striking off the company with ACRA also cancels its GST registration
- Waiting until the company is closed before applying, and missing the 30-day window
- Stopping GST charges as soon as the application is submitted, rather than on the effective date of cancellation
- Leaving assets and stock out of the F8, or valuing them at net book value instead of open market value
- Cancelling voluntarily after a single weak quarter, only to cross SGD 1 million again and have to re-register
Practical examples
Example 1: A trading company ceasing operations
A small trading company stops selling on 31 March and plans to apply for striking off later in the year. It still holds office equipment and a delivery van with a combined open market value of SGD 18,000, plus unsold stock worth SGD 7,000, and input tax was claimed on all of them. The company applies to cancel its GST registration within 30 days. Because the total value of SGD 25,000 exceeds SGD 10,000, it accounts for output tax of SGD 2,250 (9% of SGD 25,000) in its F8.
Example 2: A consultancy with few assets
A consultancy company registered voluntarily three years ago. Its taxable turnover has settled at about SGD 400,000, so it applies for voluntary cancellation. Its only remaining assets are laptops with an open market value of SGD 4,000. As this is below SGD 10,000, no output tax on assets arises in the F8, although the return must still be filed.
Example 3: Sole proprietor converting to a company
A GST-registered sole proprietor incorporates a private limited company and moves the business into it. The sole proprietorship must apply to cancel its registration, and the new company needs to consider its own GST registration position. Where the transfer qualifies as a transfer of a business as a going concern, the transfer itself is generally not subject to GST, but the conditions should be checked before the move takes place.
How a corporate secretary can help
Closing or restructuring a business involves several agencies working to different timetables. A corporate secretary in Singapore can help you sequence the steps so that the GST cancellation, final corporate income tax filings, CPF matters and the ACRA striking-off application move in the right order. Raffles Corporate Services can prepare the F8 asset listing, file the cancellation and final return on the IRAS myTax Portal, and handle the related accounting and ACRA filings.
Requirements may change, so always check the latest guidance from ACRA, IRAS or MOM, or consult a professional adviser.
Frequently Asked Questions
Does striking off my company cancel its GST registration automatically?
No. GST cancellation is a separate application to IRAS. You should cancel the GST registration and settle all GST obligations before, or alongside, the striking-off process with ACRA.
When is the final GST return due?
The GST F8 is due within one month from the end of the final accounting period stated on the return. That period ends on the last day of registration, which is the day before the effective date of cancellation.
Do I have to pay GST on assets I still own when I deregister?
Yes, if input tax was claimed on them (or they were acquired as part of a going concern transfer) and their total open market value on the last day of registration exceeds SGD 10,000. Output tax is then accounted for at the prevailing rate in the F8.
Can I cancel my GST registration if I registered voluntarily?
Yes, provided you have been registered for at least two years and are no longer liable to be registered, meaning your taxable turnover for the next 12 months is expected to be SGD 1 million or less.
Key takeaways
- Apply to cancel GST registration within 30 days when the business ceases, is sold or transferred, or changes legal structure.
- Voluntary cancellation is possible when taxable turnover is expected to be SGD 1 million or less, but voluntary registrants must stay registered for at least two years.
- File the final GST F8 within one month after the final accounting period, including output tax on assets held if their total open market value exceeds SGD 10,000.
- ACRA striking off and IRAS GST cancellation are separate processes, and records must be kept for at least five years.
If you would like to find out more about how Raffles Corporate Services can assist with your company’s compliance and corporate secretarial requirements, please get in touch with the team at [email protected].
Yours sincerely,
The editorial team at Raffles Corporate Services
Disclaimer: This does not constitute legal advice. If you require legal advice, please contact a lawyer.