1. In Singapore, GST is levied on the import of goods as well as nearly all supplies of goods and services in Singapore at the prevailing GST rate. At present, the prevailing GST rate is 9%.
2. Under Singapore GST, there are also GST exemptions that apply to areas such as the provision of most financial services, the supply of digital payment tokens, the sale and lease of residential properties, and the importation and local supply of investment precious metals.
3. In addition, Singapore GST also allow GST zero-rating (i.e. charge GST at 0%) for goods that are exported and international services. In order for you to be able to zero-rate, you must be certain that you satisfy the following conditions:
a) the goods will be exported or have been exported and you have the required documents to support it; or;
b) the supply of services falls within the description of international services under Section 21(3) of the GST Act.
4. According to IRAS, there are two types of exports that you need to take note of when determining whether you can GST zero-rate or not for goods to be exported. This are Direct Exports and Indirect Exports.
5. Direct Exports occurs when you have custody of the goods to be exported and control the export arrangement. This exports may be zero-rated if the required documents to support zero-rating are maintained within 60 days.
6. On the other hand, Indirect Exports occur when you do not have custody of the goods to be exported or you do not have control over the export arrangement. Consequently, you must treat the sale as a local standard-rated supply, i.e. charge and account GST at 9%.
7. However, you can zero-rate the Indirect Exports if you are certain that all the goods will be exported and the required documents to support zero-rating can be maintained within 60 days.
8. Please contact us if you need any assistance if you are not sure on how to approach GST on Exports. At PL Biz Consulting Pte Ltd, we have the right people and expertise to help guide and explain to you on how to go about complying with IRAS GST on Exports requirements..