If your total revenue is more than S$1M and 90% of which is generated offshore, then your company must apply for a GST Exemption (GST F2 application) with IRAS to defer the need to conduct ongoing GST compliance.

There are two conditions to be satisfied for the above exemption:

• The proportion of your zero-rated supplies over total taxable supplies exceeds 90%
• You would be in a net refundable position had you been GST-registered

Going forward and in order to maintain this exemption, your company will need to constantly monitor your total offshore/international revenue to ensure that it continues to form at least 90% of your total revenue allocation.

At any time, if your offshore revenue drops below 90% (e.g., consistently for 3 months), then you need to inform IRAS and register for GST as soon as possible. It is also likely that IRAS will backdate the effective date of GST registration to the date where the offshore/international sales falls below 90%.

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