1. The GST treatment for the travel industry are separated into two categories, i.e. supply of travel products and travel arranging services.
2. The supply of travel products are goods or services supplied to travellers in relation to their travel to and/or stay at a destination. Examples include flights, hotels, tours, land transfers and admission to places of interest. Suppliers of travel products are airlines, hotels and tour operators.
3. The supply of travel arranging services are the provision to arrange or facilitate the booking and payment of an
underlying travel product (e.g. flights or accommodation). Suppliers of travel arranging services are travel agent, including a travel agent who operates its business via digital platform and website. Travel agents may charge a fee to customers and/or earn a commission from travel product suppliers (e.g. airlines and hotels) for the
travel arranging services provided.
4. The GST treatment for the supply of travel products can be summarised as follows:
- Supply of international transport of passengers such as the sale of air tickets, ferry tickets and coach tickets from Singapore/Other countries to Singapore/other countries – Zero-rate
- Supply of travel insurance for international transport of passengers – Zero-rate
- Supply of travel accommodation – standard-rate if the accommodation is located in Singapore; outside the scope of GST if the accommodation is located outside Singapore
- Supply of outbound tour package – Zero-rate
- Supply of inbound tour package – Standard-rate
5. The GST treatment for the supply of travel arranging services can be summarised as follows:
- Arranging of international transport of passengers and related insurance such as arranging or facilitating the booking/purchase of air tickets, travel insurance – Standard-rate if local customer; Zero rate if overseas customer
-
Arranging of accommodation such as provision of services to arrange or facilitate the booking of hotels or hostels – Standard-rate if local customer; Zero rate if overseas customer
- Arranging of inbound/outbound tour package – Standard-rate if local customer; Zero rate if overseas customer
6. Please contact us if you company is a GST registered travel business and need assistance to comply with the GST Act. At PL Biz Consulting Pte Ltd, we have the expertise and experienced people to guide you on how to equipped your business to meet the requirements of Singapore GST for travel industry.
