It is common that not-for-profit organisations (“NPO”) in Singapore tend to evaluate, determine, and tag their GST registration requirement/non-requirement to their IPC status. As a representative of an NPO, if your thought process is along this line, the salient points below will help you have a clearer picture so that your analysis can be calibrated to align with local GST legislation.             

Based on our partnership with NPOs in a similar context, we understand that these are common (but not exhaustive) channels which NPOs receive considerations to fund their proposed mission and vision:

  • Outright donation
  • Grant
  • Sponsorship
  • Government subvention
  • Investment income (e.g. shares, bonds, properties)
  • Rental income
  • Programme fee (subsidised rate)

Current GST registration guidelines and determining factors do not differentiate an NPO from a business that operates for profit. It is, therefore, essential to analyse, determine, and segregate the above-mentioned categories of funding and income received into:

  1. taxable for GST purpose; and
  2. not taxable for GST purpose.

 

Tagging to the above, funding and income classified under category (1) need to be evaluated in totality for a period of 12 months (with calendar year as focal point) to see whether:    

  1. receipts from business activities taxable exceeded or is expected to exceed S$1 million; or
  2. services procured from overseas vendors (i.e. imported services) exceeded or is expected to exceed S$1 million.

To help you with your GST registration analysis and assessment, we summarised and debunked common myths in the table below:

The common myths and the respective correct fact in GST registration

For more information, get in touch with our GST professionals:

Richard Ong
Partner & Head of Goods & Services Tax