Zero-rating of GST (i.e. charge GST at 0%) is possible in the provision of International Services and Export of Goods.
Not all services provided to overseas customers can be zero-rated. Certain services provided to local customers may also qualify for zero-rating. Companies may only zero-rate their supply of services if it falls within the description of international services under Section 21(3) of the GST Act.
Depending on the nature of service provided, companies may need to determine the belonging status of their customer (i.e. whether the customer is a person belonging in Singapore or belonging in a country other than Singapore). Insufficient knowledge on the implications of GST on services rendered carries the risk of costly penalties.
0% GST can be charged for your supply of goods when you are certain that at the point of supply (based on the time of supply for exports) :
- The goods supplied will be exported or have been exported; and
- You have the required documents to support zero-rating
As this topic is regarded as one of the more challenging areas of GST, this webinar will provide in-depth insights on essential issues and peculiarities of GST treatment on goods and services. Through the use of practical examples and case studies, you will get a clearer understanding on how to correctly apply zero-rating treatment to avoid common errors and costly penalties.
A Highlight of Key Areas:
Place of supply
- Belonging concept
- Determining the belonging of Supplier and Customer
Zero-Rating of International Services
- Determining the belonging status of customers
- Clarification on “directly in connection with” and “directly benefit”
- Misconceptions
- List of services and their conditions
- Examples and illustration
- Avoiding the mistakes commonly made in applying zero-rating
- Recent updates
Zero-Rating of the Export of Goods
- Direct and Indirect Exports
- The 60-day Rule
- The various circumstances and documentary requirements for which a supply of goods can be zero-rated
- Situations where supplies of goods do not qualify for zero-rating
- Goods Hand-carried out of Singapore
- Examples and illustration
- Avoiding the mistakes commonly made in applying zero-rating
- Recent updates
Practical Zero-Rating Issues to consider during the COVID-19 period