Approved Refiner and Consolidator Scheme (ARCS)

With this scheme, both an approved refiner as well as an approved consolidator will be entitled to benefits like import GST suspension (on eligible imports only) & additional benefits with respect to input tax. According to the ARCS, you’ll be approved either as an approved consolidator or an approved refiner.

This scheme intends to simplify cash flow & compliance of eligible consolidators/refiners of IPM (investment precious metals) with respect to their GST payment on raw materials which are purchased & imported. Also helps in relieving them from input tax they have incurred in relation to refining activities.

What are Your Benefits From This Scheme as an Approved Refiner?

You will be considered as an approved refiner when you convert or process commodities into IPM/extract IPM from commodities/mint a coin of IPM and it gets an IRAS approval under this scheme.

Import GST suspension:

Your (you being the approved refiner) GST charges will be suspended on imports under the following circumstances:

  • When your own commodities are imported for your business-related reasons.
  • When you import commodities that belong to your overseas principal who has not registered for GST with an intention to supply (in Singapore/for export reasons), in capacity of a section 33(2) agent*.
  • When you import goods which belong to your non GST-registered overseas principal and re-export them subsequently, in capacity of a section 33A agent*.
  • When you import goods such as precious metals or materials that were sent to you via an overseas customer who has not registered for GST, with an intention to refine them into precious metals or IPM.
  • Effective 1 January 2015, when goods you sent overseas are re-imported for a value-added activity, which belongs either to your local/overseas customer who has registered for GST, you can make a GST claim on such value-added commodities you’ve re-imported provided certain conditions are met.

*As a section 33(2) agent you can supply/import commodities on behalf of a foreigner who has not registered for GST in Singapore.

*As a section 33A agent, when you import commodities that belong to a foreigner and later export them, you can make a GST claim for the GST charges you paid during the import process, in place of an overseas person provided you comply with specific criteria.

Supply commodities to another ARCS person minus GST collection:

You don’t have to account for/collect GST in the event of you providing commodities to other ARCS persons for your business-related purposes. However, this is not applicable to a refining activity you render. You’re liable to report 7% GST on the refining activities you render in relation to commodities that are locally delivered.

When it comes to commodities being exported, a refining activity might be considered as zero-rated when the required export documents are maintained.

Make additional input tax claims:

You will be allowed to claim the entire input tax you’ve incurred within your business operation. This will not be applicable to specific expenses that are disallowed based on Regulations 26 & 27.

According to the regulations 26 & 27 of the GST regulations (general), you cannot claim input tax on the expenses that are mentioned below:

  • A benefit which is rendered to either a relative or a family member of your employee.
  • Running expenditure and costs incurred on a motor car which is:
    • Registered under an individual's or a business’ name or
    • Hired for private/business use.
  • Club subscription charges (inclusive of transfer fees) levied by recreation & sports clubs.
  • A medical expense which is incurred with respect to your employee unless it is compulsory as per the Work Injury Compensation Act or based on a collective agreement as per the Industrial Relations Act.
  • An accident/a medical insurance premium incurred in relation to your staff unless the payment or insurance compensation is mandatory according to the Work Injury Compensation Act or depending on any collective agreement under the Industrial Relations Act.
  • A transaction which involves sweepstakes, betting, lotteries, games of chance, or fruit machines.

What Benefits Can You Expect as an Approved Consolidator?

You will be referred to as an approved consolidator when you aggregate or consolidate materials for delivery or supply to mentioned refiners which are meant for refining into investment precious metals. This also needs an approval from IRAS under this scheme.

Suspension of GST on goods imported:

  • You’ll be entitled to import GST suspension on commodities that you own or which are dispatched to you via a foreigner who has not registered for GST in Singapore.
  • When goods are directly delivered or supplied to the concerned refiner in order to refine them into precious metals/IPM.

No GST will be collected when you provide goods to another ARCS person:

You’re not liable to either account for or collect GST for commodities you supply to an approved refiner for activities related to your business.

Make additional input tax claims:

You can make additional input tax claims versus what you’re entitled to according to the standard GST rules:

  • When you’re a bank:
  • You will be allowed to claim the entire input tax you’ve incurred on import/purchase of precious metals. Any other kind of an expense will be subjected to an input tax recovery rate which is fixed for you.

  • When aren’t a bank:
  • You will be allowed to claim complete input tax you’ve incurred on expenses in relation to goods purchased with an intention to convert them into investment precious metals and on the initial sale of freshly refined investment precious metals.

Your remaining input tax will be subjected to a specific apportionment formula which is mentioned in the ARCS e-Tax guide.

Businesses Which are Currently Approved Under the Approved Refiner and Consolidator Scheme

Sl no Status Entity ID Approval date Name of the approved business
1 Active (approved refiner) 200101382E 6 June 2013 Metalor Technologies Singapore Pte Ltd
2 Active (approved consolidator) 201224451E 7 April 2015 YLG Bullion Singapore Pte. Ltd.

Documents You Need to Submit in Order to Apply for This Scheme

Here’s what you need to provide to make a claim under this scheme:

  • GST F27B or GST F27A: ARCS applications you need to submit when you’re applying as an approved refiner or an approved consolidator respectively.
  • Required supporting documents need to be submitted to the GST Comptroller.
  • A comprehensive description of the business arrangement(s), business activities, concerned parties currently involved, plus a pictorial representation of your goods movement as well as the supply chain.

In addition to submitting the documents and applications mentioned earlier, you should also either take part in ACAP (the Assisted Compliance Assurance Programme) or a self-review needs to be done.

  • Your self-review can be done via ASK (Assisted Self-Help Kit). Post which you can submit your ASK declaration form (certified). Either an external or your in-house tax professional should certify this form you intend to submit. The concerned tax professional should either be an accredited tax advisor (GST) or an accredited tax practitioner (GST) with SIATP (Singapore Institute of Accredited Tax Professionals).
  • If you’re an active ACAP applicant, it’s not necessary for you to submit an ASK declaration form when the ACAP report submission and the ACAP review results are pending.

Other Schemes Available

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