The Approved Refiner and Consolidator Scheme (ARCS)
The Approved Refiner and Consolidator Scheme (ARCS) is administered by the Inland Revenue Authority of Singapore (IRAS). It is designed to ease cash flow and compliance for qualifying refiners and consolidators of investment precious metals (IPM) when they pay GST on imports and purchases of raw materials, and to relieve input tax incurred on refining activities.
The scheme complements the GST exemption on investment precious metals, which took effect following Budget 2012.
Who can be approved
- Approved Refiner: a business that processes or converts goods into IPM, extracts IPM from goods, or mints coins that are IPM, and is approved by IRAS under ARCS.
- Approved Consolidator: a business that consolidates or aggregates materials for supply or delivery to specified refiners to be refined into IPM, and is approved by IRAS under ARCS.
Benefits for Approved Refiners
- GST suspension on qualifying imports, including goods you import for your own business and goods belonging to overseas principals who are not GST-registered.
- You can supply goods to other ARCS persons without collecting GST.
- You can claim input tax incurred in the course of your business, except expenses specifically disallowed under the GST regulations.
Benefits for Approved Consolidators
- GST suspension on imports of materials that are delivered directly to a refiner for refining into IPM.
- You can supply goods to an Approved Refiner without collecting GST.
- Enhanced input tax recovery. Banks can claim full input tax only on purchases and imports of precious metals, with other expenses subject to a fixed recovery rate. Non-bank consolidators can claim full input tax on purchases of goods for conversion into IPM and on the first sale of newly refined IPM, with residual input tax under a special apportionment formula.
How to apply
Apply to the Comptroller of GST using the relevant form, with the supporting documents:
- GST F27A: application as an Approved Consolidator.
- GST F27B: application as an Approved Refiner.
Include a detailed description of your business activities, business arrangements and parties involved, and a diagram of the supply chain and goods movement. Eligibility conditions are set out in the IRAS e-Tax guide. IRAS may also require a self-review or participation in the Assisted Compliance Assurance Programme (ACAP), so confirm the current requirements with IRAS before applying.
This page is general information, not tax advice. GST rules can change, so confirm the current position with IRAS or a qualified tax adviser before making decisions.