Q：
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What are the benefits of Cash Accounting Scheme?
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A：
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Eases Cashflow – If you are not operating under the Cash Accounting Scheme, you must account for output tax based on the time of supply rules applicable to all GST registered businesses.
Eases Compliance – The scheme also has the benefit of easing compliance as businesses on the scheme only need to keep track of when they receive and make payment for their GST reporting.
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Q：
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Who is qualifying for the Scheme?
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A：
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You are registered for GST under voluntary basis:
1.
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You do not expect the value of your taxable supplies to exceed S$1 million for the 12 months after using the scheme;
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2.
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You have no GST returns unfiled or tax unpaid; and
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3.
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In the three years before the date of your application, you have not:
(1)
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Been convicted of an offence nor accepted an offer of composition under the GST Act or the Customs Act;
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(2)
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Been assessed to a penalty under Section 48 of the GST Act; and
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(3)
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Had the Cash Accounting Scheme withdrawn from you.
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Q：
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How to get Approval?
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A：
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IRAS will approve your application if we are satisfied that due to the nature, volume and value of your taxable supplies and the nature of your accounting system, it is more appropriate for you to adopt this scheme.
Once your application is approved, you will be informed of the effective date from which you can start using the scheme. This effective date is usually the beginning of a prescribed accounting period.
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Q：
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What happens once approved?
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A：
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Once approved, you are on the scheme for three years. You remain on the scheme for three years even if your taxable supplies exceed S$1 million per annum during the three years.
To continue on the scheme after the three years, you must submit a new application at least 3 months before your approval expired.
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Q：
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How to get account for output tax upon expiry of scheme?
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A：
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You may continue to account for output tax on the supplies made while you were under the scheme upon receipt of payment from your customers. If you opt to do so, you will correspondingly only claim input tax on purchases received while under the scheme upon making payment to your suppliers.
However, you must account for output tax on taxable supplies made after the date of expiry of your approval based on the time of supply rules.
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Q：
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How to account for output tax upon de-registration from GST or Cessation of Business?
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A：
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You will account for and pay the outstanding output tax on all your taxable supplies made in the 12 months preceding your de-registration from GST in your Final GST Return (GST F8).
If you cease business (but have yet to cancel your GST registration), you will account for and pay the outstanding output tax on all your taxable supplies made in the 12 months preceding your cessation of business in your next GST return to be submitted.
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FAQ
