Approved Refiner and Consolidator Scheme (ARCS)

Purpose

The Approved Refiner and Consolidator Scheme (ARCS) is designed to ease cash flow and compliance of qualifying refiners and consolidators of investment precious metals (IPM) in their payment of GST on import and purchase of raw materials and relieve input tax incurred on refining activities.

The ARCS is intended to complement the GST exemption of IPM announced in Budget 2012.

For details of the GST exemption of IPM, please refer to GST: Guide on GST Exemption of Investment Precious Metals (IPM) (PDF, 397KB).

ARCS persons are approved under the scheme as either an Approved Refiner or Approved Consolidator.

Benefits for Approved Refiners

An Approved Refiner:

1. processes or converts goods into IPM, or extracts IPM from goods; or
2. mints coins that are IPM;

and is approved by IRAS under the ARCS.

1. GST suspension on imports

   As an Approved Refiner, you enjoy import GST suspension for the following scenarios:

   1. Importation of your own goods in the course or furtherance of your business;
   2. Importation of goods belonging to your overseas non GST-registered principal for supply (either in Singapore or for export), as a section 33(2) agent *. The overseas principal must not be GST-registered or if he is GST-registered, the registration is as a pay-only person under the Overseas Vendor Registration regime;
   3. Importation of goods belonging to your overseas non GST-registered principal which will subsequently be re-exported, as a section 33A agent *. The overseas principal must not be GST-registered or if he is GST-registered, the registration is as a pay-only person under the Overseas Vendor Registration regime;
   4. Importation of goods (for example, materials or precious metals) consigned to you by an non GST-registered overseas customer, for the purpose of refining them into IPM or precious metals. The overseas customer must not be registered for GST or if he is GST-registered, the registration is as a pay-only person under the Overseas Vendor Registration regime; and
   5. Re-importation of goods which you previously sent abroad for value-added activities, belonging to your local customer or GST-registered overseas customer (other than a person registered under the Overseas Vendor Registration regime as a pay-only person) if the requirements under section 33B explained in GST: Claiming of GST on re-import of value-added goods (PDF, 565KB) are satisfied.

   * For more information on sections 33(2) and 33A agents, please refer to GST: Guide on Imports (PDF, 423KB).

2. Supply goods to other ARCS persons without collecting GST

   You are not required to collect and account for GST when you supply goods to another ARCS person in the course or furtherance of your business.

   This however does not include the supply of refining activities. You need to account for 9% GST on the supply of refining activities relating to goods delivered locally.

   Where it relates to goods being exported, the refining activities may be zero-rated provided that the relevant export documentation is maintained.

3. Claim more input tax

   You are able to claim all the input tax you incurred the course or furtherance of your business, except for expenses specifically disallowed under Regulations 26 and 27.

Benefits for Approved Consolidators

An Approved Consolidator consolidates or aggregates materials for supply or delivery to specified refiners to be refined into IPM and is approved by IRAS under the ARCS.

1. GST suspension on imports

   
   

   You enjoy import GST suspension on goods (for example, materials or precious metals) which:

   1. Belong to you or are consigned to you by an overseas person who is not registered for GST in Singapore or if he is registered, the registration is as a pay-only person under the Overseas Vendor Registration regime; and
   2. Are to be directly supplied or delivered to a refiner for the purpose of refining them into investment precious metals or precious metals.

2. Supply goods to other ARCS persons without collecting GST

   
   

   You are not required to collect or account for GST when you supply goods to an Approver Refiner in the course or furtherance of your business.

3. Claim more input tax

   
   

   You can claim more input tax than you would be entitled to under normal GST rules:

   1. If you are not a bank

      You are able to claim full input tax on expenses incurred for the purchase of goods for conversion into IPM and making the first sale of newly refined IPM.

      Your residual input tax will be subject to a special apportionment formula, as set out in the ARCS e-Tax guide.

   2. If you are a bank

      You are able to claim full input tax only on the purchase and import of precious metals. Other expenses will be subject to your fixed input tax recovery rate.

For details on the input tax recovery for Approved Consolidators, please refer to GST: Approved Refiner and Consolidator Scheme (ARCS) (PDF, 881KB).

For more information on how the ARCS works, responsibilities of ARCS persons and the GST reporting requirements, please refer to GST: Approved Refiner and Consolidator Scheme (ARCS) (PDF, 881KB).

Applying for ARCS

For details on the eligibility conditions for the ARCS, please refer to  GST: Approved Refiner and Consolidator Scheme (ARCS) (PDF, 881KB).

To apply, please submit:

1. GST F27A: Application for Approved Refiner and Consolidator Scheme (ARCS) as an Approved Consolidator (XLS, 64KB); or
2. GST F27B: Application for Approved Refiner and Consolidator Scheme (ARCS) as an Approved Refiner (XLS, 71KB).

with the necessary supporting documentation to the Comptroller of GST.

Please also provide a detailed description of your business activities, business arrangement(s) and parties involved and a diagrammatic representation of the supply chain and goods movement.

Self-Review or ACAP

In addition, you must either:

1. Perform a self-review using the Assisted Self-Help Kit (ASK) and submit the certified ASK declaration form.

   Download the  ASK: Declaration Form on Completing Annual Review & Voluntary Disclosure of Errors (ZIP, 67KB) (i.e. Section 3 of ASK).

   The ASK declaration form has to be certified by either your own in-house or external tax professional who is accredited as an Accredited Tax Practitioner (GST) or Accredited Tax Advisor (GST) with the Singapore Chartered Tax Professionals Limited ("SCTP").

   For more information on accreditation, please visit https://sctp.org.sg.

2. Commit/Have committed to participate in the Assisted Compliance Assurance Programme (ACAP)

   For successful ACAP applicants, you do not need to submit the ASK declaration form pending the result of ACAP review and submission of ACAP Report.

Businesses approved under ARCS