"To qualify for voluntary deregistration, businesses must meet the following key conditions:
Taxable turnover is below S$1 million in the past 12 months
The business does not expect to exceed the S$1 million threshold in the next 12 months
The forecast must be supported by objective evidence, such as financial statements, contracts, or business projections"
According to BBCIncorp’s article, voluntary deregistration depends on both current turnover and credible evidence about future revenue.
Voluntary GST deregistration is usually considered when a business has become smaller, less active, or more cost-conscious. However, it should not be based only on a temporary drop in sales. To Deregister for GST voluntarily, the company must be able to show that its taxable turnover is below the threshold and that it does not reasonably expect to cross the threshold again in the near future.
This is where objective evidence becomes important. Financial statements can show historical turnover, while signed contracts, sales pipelines, business forecasts, or management projections can support the expected revenue position. IRAS is not simply looking for a business owner’s preference. It needs a reasonable basis for believing that GST registration is no longer required.
For some businesses, deregistration may reduce compliance workload. Fewer GST filings, simpler invoicing, and lower administrative effort can be attractive, especially for small companies or businesses with reduced operations. Yet the decision also has trade-offs. Once deregistered, the business may no longer claim input tax on purchases made after cancellation, which can affect costs.
The decision should therefore be practical, not purely procedural. A company with falling turnover but high taxable expenses may need to compare the savings from simpler compliance against the loss of input tax recovery. A business expecting a new contract or market expansion may also need to consider whether it could soon exceed the registration threshold again.
For businesses evaluating whether to deregister GST voluntarily, the key is to combine compliance eligibility with commercial judgment.
For the full explanation of voluntary eligibility, evidence, and post-deregistration impact, readers can review BBCIncorp’s main article on GST deregistration in Singapore.
Contact information:
BBCIncorp's Office in Singapore:
Organization: BBCIncorp Group
Legal Name: BBCIncorp Pte. Ltd.
Website URL: https://bbcincorp.com/sg
Email: service@bbcincorp.com
Address in Singapore: 9 Raffles Place, #29-05 Republic Plaza, Singapore (048619)
Phone in Singapore: (+65) 6011 8200
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