NPO GST Registration Myths Debunked

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:

taxable for GST purpose; and
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:

receipts from business activities taxable exceeded or is expected to exceed S$1 million; or
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

Besides the above information that helps with your GST registration analysis, there might be scenarios and areas specific to your situation(s) where our GST specialists are glad to assist you:

Richard Ong
Partner
T +65 6594 7821
[email protected]

Lee Meow Ling
Senior Manager
T +65 6715 1143
[email protected]