Providing international services

admin 29/05/2021 230

Your services are considered international services, which are zero-rated (i.e. GST is charged at 0%), if they fall within the provisions under Section 21(3) of the GST Act. Depending on the nature of your services, you may be required to lớn determine your customer"s belonging status (i.e. whether the customer is a local or an overseas entity) before your supply of services can be zero-rated.

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You can zero-rate your supply of services (i.e. charge GST at 0%) only if it falls within the description of international services under Section 21(3) of the GST Act . It is important khổng lồ note that not all services provided to overseas customers can be zero-rated.

Find out more information about international services in this extract of Section 21 of the GST Act (PDF, 203KB).

NoType of ServicesQualifying Criteria khổng lồ Zero-RateGST ActExamples & Relevant e-Tax Guides

1
(a) Media Sales

Supplies made prior to 1 Jan 2022

Place of circulation is substantiallyoutside Singapore.
S21(3)(u)
Webpage on Advertising services
GST: Treatment of Advertising Services (PDF, 295KB)

GST: Exhibition, Convention và Ancillary Services (PDF, 662KB)

Supplies made on or after 1 Jan 2022New!
Services are supplied undera contract with an overseas person và directly benefit either an overseas person or a GST-registered person in Singapore.
Pending amendments
(b) Media Planning
Services are provided contractually to lớn and directly benefiting overseas person*
S21(3)(j)

(c) Creative sầu và Production Sales
Services are provided contractually lớn and directly benefiting overseas person*
S21(3)(j)

(d) Brand Public Relations
Services are provided contractually lớn and directly benefiting overseas person*
S21(3)(j)

(e) Event Organising
Event is held wholly outside Singapore; or Services are provided contractually khổng lồ và directly benefiting overseas person in his business capacity*

*With effect from 1 Jan 20trăng tròn, you may also zero-rate your servicessupplied to lớn an overseas person where the servicesdirectly benefit a GST-registered person belonging in Singapore, subject to anyother conditions that may be imposed under section 21(3)(j) or (k).
S21(3)(i);S21(3)(k)

The following table provides details on types of services which will be regarded as international transport for goods and passengers:
NoType of ServicesQualifying Criteria lớn Zero-RateGST ActExamples và Relevant e-Tax Guides
3
International transport of passengers
Passengers must be transported:
from Singapore to lớn a place outside Singapore;from a place outside Singapore lớn Singapore; orfrom a place outside Singapore to lớn another place outside Singapore.
From 1 Jul 2010, the international transport of passengers by sea qualifies for zero-rating:
where the transporting vessel is bound for or returning from a fixed port of Gọi outside Singapore, including from a place outside Singapore khổng lồ another place outside Singapore;from a place in Singapore khổng lồ a place outside Singapore; orfrom a place outside Singapore to lớn a place in Singapore.where the transporting vessel sails lớn or from international waters and the course of transportation occurs "substantially outside of Singapore".
A course of transportation is considered "substantially outside Singapore" if travel in Singapore waters is only needed for departing khổng lồ or returning from international waters.
S21(3)(a)
You are a local travel agent. Your customer buys a single air ticket for flights from Singapore khổng lồ nhật bản and then lớn Los Angeles.
You may charge GST at 0% on the air tickets because it is a contract for international transport.
From 1 Jul 2010, "cruise-to-nowhere" packages, (i.e. cruises in international waters which bởi not doông xã at any port outside Singapore), will qualify for zero-rating.
GST: Travel Industry (PDF, 150KB)

4
International transport of goods; and any transport of goods within Singapore (including handling, loading & unloading), being part of the international transport supplied by the same person or agent.
To qualify as international transport, the goods must be transported:
from Singapore to lớn a place outside Singapore;from a place outside Singapore to lớn Singapore; orfrom a place outside Singapore lớn another place outside Singapore.
From 1 Jul 2010, the international transport of goods by sea qualifies for zero-rating:
where the transporting vessel is bound for or returning from a fixed port of Call outside Singapore, including from a place outside Singapore lớn another place outside Singapore;from a place in Singapore lớn a place outside Singapore; orfrom a place outside Singapore to a place in Singapore.where the transporting vessel sails khổng lồ or from international waters & the course of transportation occurs "substantially outside of Singapore".
A course of transportation is considered "substantially outside Singapore" if the travel in Singapore waters is only needed for departing to lớn or returning from international waters.
Zero-rating also applies lớn the domestic transport of goods within Singapore if it is supplied as part of the international transportation of goods, & it is supplied by the same supplier. The supplier does not need khổng lồ persize the domestic transport activities himself, but must be contracted to provide both the international & domestic leg of transportation.
Zero-rating does not extover khổng lồ domestic transport services provided to passengers.
S21(3)(a); S21(3)(b)
You provide transport services from a warehouse in Singapore to the airport and then out of Singapore.
You may zero-rate the total value of transportation services (including the local transportation costs) since you are providing both international and domestic transportation services.
GST Guide for the Logistics Service Industry (PDF, 1327KB)

5
Services of the following description:
Insuring or arranging for insurance; orArranging for international transport.
Services must be in relation to lớn the international transport of passengers or goods.
S21(3)(c)
Premiums / commissions for the following types of insurance:
Marine cargo, Marine hullAviation cargo, aviation hullTravel insurance (which is identifiable with journeys involving carriage of passengers or goods khổng lồ & from Singapore)
GST Guide for the Logistics Service Industry (PDF, 1327KB)
GST: Guide for the Insurance Industry (Fifth Edition) (PDF, 655KB)

NoType of Services
Qualifying Criteria to lớn Zero-Rate
GST ActExamples & Relevant e-Tax Guides
7
Services are any of the following:
cultural, artistic, sporting, educational (all forms of instruction), or entertainment (e.g concerts, performance, game, sport) services,exhibition or convention services; orother services supplementary khổng lồ those listed above sầu. This includes organising the performance outside Singapore.
Services must be performed completely outside Singapore.
S21(3)(i)
An sự kiện management company charges a fee for organising a concert in Malaysia.
A management course entirely conducted in Beijing, China.
GST: Exhibition, Convention and Ancillary Services (PDF, 662KB)

NoType of Services
Qualifying Criteria lớn Zero-Rate
GST ActExamples và Relevant e-Tax Guides
8
Services performed directly in connection with goods
Services must be directly in connection with goods for export and supplied to lớn an overseas customer, at the time the services are performed. Services must not include truyền thông sales under S21(3)(u).
There must be definite & immediate intention for export at the time the services are performed in order for you khổng lồ zero-rate your supply under this section.To establish definite and immediate intention for export, you must satisfy the following requirements -
You must obtain a written confirmation from the overseas customer (e.g. from contracts, correspondences) that the goods will be exported after completion of the services và the expected date of export. You have up to 60 days from the completion of service lớn ensure goods are exported và obtain the required export documents in the e-Tax Guide “GST Guide on Exports”. You need not be the exporter of the goods.
If you are the intermediary service provider (i.e. after you have sầu completed your services, you deliver the goods to another service provider of your overseas customer for further value-added services before the goods are exported), you cannot zero-rate your services khổng lồ your overseas customer unless you are certain that the goods will be exported.To establish certainty that the goods will be exported, you must satisfy the following requirements:
You have written confirmation from your overseas customer that the goods will be exported after another appointed service provider has performed his services and obtain the expected date of export. You know who is your overseas customer"s other service provider (with regard to the particular supply chain).You must obtain confirmation from the other service provider that the goods will be exported & obtain a copy of the export documents within 60 days after completion of his services.
S21(3)(g)
You provide engraving services for pewter vases to lớn be exported to lớn nước Australia. The service is billed lớn an overseas customer.You provide domestic transport services to an overseas customer by collecting the goods from a local warehouse & delivering them to the airport for overseas export.
GST Guide for the Logistics Service Industry (PDF, 1327KB)Clarification on "Directly in Connection with" and "Directly Benefit" (PDF, 604KB)
In order for you & XYZ Pte Ltd to zero-rate the services provided khổng lồ the overseas customer, both of you must be certain that the machine will be exported (based on written confirmation from the overseas customer) và obtain the expected date of export.After you provide the repackaging services, you must export the machine & collate all the export documents within 60 days. Both you & XYZ Pte Ltd must maintain copies of the required export documents. XYZ Pte Ltd does not have sầu to lớn be the các buổi tiệc nhỏ lớn export the goods in order for his services to be zero-rated.
9
Certain financial services supplied in connection with goods. The full danh sách of services can be found in the First Schedule of GST (International Services) Order. Please refer khổng lồ paragraph (h) in the extract of Section 21 of the GST Act (PDF, 203KB).
Services must be in connection with goods for export or goods that are moved from a place outside Singapore to lớn another place outside Singapore (i.e. out-of-scope supplies of goods)
S21(3)(h)
An insurance company provides export credit insurance khổng lồ company A lớn protect company A from non-payment by its overseas customer for goods exported.
GST: Guide for the Insurance Industry (Fifth Edition) (PDF, 655KB)

NoType of Services
Qualifying Criteria khổng lồ Zero-Rate
GST ActExamples và Relevant e-Tax Guides
10
Services made directly in connection with lvà or buildings.
These may include:
Services made in the course of construction, repair, and maintenance of any building.Services provided by estate agents, auctioneers, architects, và engineers.
Services must be directly in connection with land or buildings located outside Singapore. Services must not include truyền thông sales under S21(3)(u).
S21(3)(e)
An architect in Singapore provides design services for a building located in China.
An estate agent in Singapore sells a house in London.
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GST: Construction Industry (English version) (PDF, 273KB)GST & the Construction Industry (Chinese version) (PDF, 269KB)
11
Services performed directly in connection with goods.
Services must be directly in connection with goods located outside Singapore at the time the services are performed. Services must not include media sales under S21(3)(u).
S21(3)(f)
A local company provides repair services for a computer network system in Malaysia.

NoType of Services
Qualifying Criteria to lớn Zero-Rate
GST ActExamples và Relevant e-Tax Guides
12
Services supplied to overseas persons
The services must be supplied:
Services must not relate to lớn lvà or goods in Singapore, other than goods referred to lớn in S21(3)(g).
The overseas person must not be in Singapore at the time the services are performed.
Services must also not include media sales under S21(3)(u).
S21(3)(j)
You provide market retìm kiếm services on "price of medical services" for an overseas company.
13
Services within the menu of prescribed services:
Services of engineers, accountants, lawyers & other similar consultancy services;Data processing & provision of information.The testing of a sample of goods that are taken from or khung part of: goods outside Singapore at the time the services are performed, orgoods for export outside Singapore;Handling, storage at, or transport of goods khổng lồ or from the place of export khổng lồ or import from, or handling or storage of such goods in connection with such transportExhibition or convention services;Training or retraining for any business or employment;Services supplementary khổng lồ, including the organising services referred khổng lồ in sub-paragraphs (e) & (f).This menu of prescribed services above cannot include any services related lớn accommodation & entertainment.
The prescribed services must be supplied:
For services (a) và (b) stated in the prescribed menu, the services must not relate directly khổng lồ any l& or goods situated in Singapore, other than goods for export. For services (a) khổng lồ (d) stated in the prescribed danh mục that make reference to lớn goods for export, the requirement for definite & immediate intention for export under S21(3)(g) similarly applies.
Unlike S21(3)(j) above sầu, your overseas customer can be in Singapore lớn receive sầu these services.

*With effect from 1 Jan 20trăng tròn, you may zero-rate your services suppliedlớn an overseas person where the servicesdirectly benefit a GST-registered person belonging in Singapore, subject khổng lồ anyother conditions that may be imposed under section 21(3)(j) or (k).
S21(3)(k)
Example for (a) and (b):
You provide consultancy services on "feasibility of conducting business in Singapore" khổng lồ your overseas customer. Example for (d):
If you supply transport & handling services to lớn an overseas customer from the point of import (e.g. Free Trade Zone) khổng lồ the warehouse that the goods were consigned, your transport and handling services can be zero-rated.GST Guide for the Logistics Service Industry (PDF, 1327KB)
GST: Exhibition, Convention and Ancillary Services (PDF, 662KB) Example for (f) và (g):
You provide training (excluding formal education courses such as diploma, graduate và post-graduates courses) in Singapore for participants from all over the world (including Singapore). You may zero-rate your training fees to lớn overseas companies who send their overseas staff to attover the course in Singapore.

Section 21(4)(a) of the GST Act defines an aircraft as one which is:
Wholly used or intended lớn be wholly used for international travel; orA military aircraft.
International travel is defined as being:
From a place outside Singapore khổng lồ another place outside SingaporeFrom a place in Singapore to a place outside SingaporeFrom a place outside Singapore lớn a place in Singapore
Section 21(4)(a) of the GST Act defines a ship as any ship, including an oil rig. There are three exceptions:
Any ship licensed as a passenger harbour craft or pleasure craftA ship granted a vessel permit by the Public Utilities BoardAny ship designed or adapted for use for recreation or pleasure, và used within Singapore
For details, please refer khổng lồ the e-Tax Guide on GST Guide for the Marine Industry (PDF, 200KB).
NoType of Services
Qualifying Criteria lớn Zero-Rate
GST ActExamples & Relevant e-Tax Guides

14
Certain services in connection with:

the handling of ships or aircraft, orthe handling or storage of goods carried in the ship & aircraft.

The services are prescribed in the Third Schedule of GST (International Services) Order.
Please refer lớn paragraph (l) in the extract of Section 21 of the GST Act (PDF, 203KB).
S21(3)(l)
Example for thắng lợi no. 14: You provide handling and storage services within FTZs or designated areas for imported goods or goods khổng lồ be exported.
GST Guide for the Aerospace Industry
(PDF, 251KB)

GST Guide for Logistics Service Industry
(PDF, 1327KB) -
relevant only for thành tựu no. 14

15
Pilotage, salvage or towage services

S21(3)(m)

16
Services comprising the surveying or classification of any ship and aircraft for the purposes of any register

S21(3)(n)

17
Supply (including the letting & hire) of any ship or aircraft
The ship or aircraft is not leased for the purpose of providing the following services substantially in Singapore:
transport of passengers,accommodation,entertainment,catering of food or beverages, oreducation services
S21(3)(o)

18
Certain services comprising the repair, maintenance, broking or management of any ship or aircraft

The services are prescribed in the Sixth Schedule of GST (International Services) Order. Please refer lớn paragraph (p) in the extract of Section 21 of the GST Act (PDF, 203KB).
S21(3)(p)

19
Supply (including the letting or hire) of qualifying aircraft parts
Aircraft parts must be parts and equipment designed và built for exclusive sầu use on an aircraft. They should be certified as airworthy by:
a person certificated by a national civil aviation authority (for non-military aircraft); orthe doanhnghiepnet.com.vnernment owning that aircraft (for military aircraft)
S21(3)(x)

NoType of Services
Qualifying Criteria lớn Zero-Rate
GST ActExamples & Relevant e-Tax Guides
20
Certain services in connection with the provision of an electronic system relating khổng lồ import and export of goods.

The services are prescribed in the Seventh Schedule of GST (International Services) Order. Please refer to lớn paragraph (t) in the extract of Section 21 of the GST Act (203KB).

S21(3)(t)
You provide an electronic system through which the application of import/ export permits can be made. You may zero-rate the processing fee charged lớn customers who use your permit application system.

NoType of Services
Qualifying Criteria to lớn Zero-Rate
GST ActExamples & Relevant e-Tax Guides
21
The qualifying services are:
storage services;goods management services;services of holding an auction or exhibition of the goods;broking services and other similar services;conservation và restoration services;valuation services; andinsurance services.
It includes services performed on goods during the period in which the goods are temporarily removed from a warehouse under the SWS (for repair, maintenance or for an auction, exhibition or other similar event), & returned lớn any warehouse under SWS after the event.
The qualifying services must be supplied:
The services must be performed on qualifying goods stored in a warehouse under the Specialised Warehouse Scheme (SWS) :
a work of art;an antique;an artefact;a collector"s item;a precious metal (gold, silver, platinum, palladium);a precious stone (đá quí, ruby, sapphire, emerald);jewellery; orwine
according lớn the Ninth Schedule of the GST (International Services) Order.
For more information, refer to paragraph (y) in the extract of Section 21 of the GST Act (203KB).
S21(3)(y)
Specialised Warehouse Scheme và Zero-rating of Supplies (PDF, 409KB)
The e-Tax guide also contains information on the zero-rating of a supply of storage space in a warehouse under SWS (e.g. the provision of "private storage units"). This is regarded as a supply of goods, instead of storage services, for GST purposes.

NoType of ServicesQualifying Criteria to Zero-RateGST ActExamples và Relevant e-Tax Guides

22
Sale & lease of air & sea containers
The containers:
are used or khổng lồ be used for international transportation of goods; andcomply with the prescribed requirements in the Eight Schedule of GST (International Services) Order.
Please refer to paragraph (v) in the extract of Section 21 of the GST Act (203KB).
S21(3)(v)
GST: Zero-rating of Sale & Lease of Containers & Container Services (PDF, 110KB)

23
Certain services comprising the repair, maintenance or management of any air or sea containers.
The containers:
are used or khổng lồ be used for international transportation of goods; andcomply with the prescribed requirements in the Eight Schedule of GST (International Services) Order.
Please refer khổng lồ paragraph (w) in the extract of Section 21 of the GST Act (203KB).
S21(3)(w)

NoType of Services
Qualifying Criteria lớn Zero-Rate
GST ActExamples và Relevant e-Tax Guides
24
Certain services comprising the provision of telecommunications.
The services are prescribed in the Fifth Schedule of GST (International Services) Order. Please refer lớn paragraph (q) in the extract of Section 21 of the GST Act (203KB).
Services must comprise telecommunications transmitted:
inlớn & out of Singapore; oroutside Singapore.
S21(3)(q)
You are a telecommunications company and provide auto roaming service & international calls.Zero-rating Telecommunication & Related Services under Section 21(3)(q) (PDF, 202KB)

Under certain zero-rating provisions e.g. sections 21(3) (j), (k) & (s), you need to determine the belonging status of your customer, that is, whether your customer belongs lớn a country outside Singapore, before you can zero-rate your services. Your customer can be either an individual or a business. With effect from 1 Jan 20trăng tròn, the zero-rating of services under theseprovisions is extended khổng lồ services which directly benefit a GST-registeredperson belonging in Singapore, provided all other conditions specified in theprovisions are satisfied.

Customer is an Individual

Your customer will be treated as belonging in Singapore if his usual place of residence is in Singapore during the period of service. For GST purposes, an individual should have only one usual place of residence at any point in time.

The "usual place of residence" means:

The individual stays in that country voluntarily & for a settled purpose (e.g. to pursue a course of study or employment)The individual"s stay in that country has some degree of continuity apart from temporary or occasional absence, & is part of the regular & habitual pattern of his life
Residential Address as Proxy

Where an individual stays overseas khổng lồ study or work và he has more than one residential address, the Comptroller of GST may regard the individual as belonging overseas when all of the following conditions are satisfied:

He is absent from Singapore for a continuous period of at least one year. Any temporary return to Singapore for vacation or other reasonable purposes is acceptable.He stays at a fixed place in the overseas country.Where he is working overseas, his overseas assignment must not be related to his employment in Singapore. For example, an individual sent lớn work overseas by his local employer will not satisfy this condition & he will be treated as belonging in Singapore.

If your customer meets all these conditions, he is treated as belonging overseas for the entire duration of his overseas stay.

Your customer will be treated as having a business establishment in Singapore if:

his main seat of economic activity is in Singapore;he carries on his business through a branch in Singapore; orhe carries on his business through an agency in Singapore.The main seat of economic activity refers to the place where the essential decisions concerning the general management of the company are made & where the functions of its central administration are carried out. It usually refers to the head office, headquarters or principal place of business.


1	(a) Media Sales	Supplies made prior to 1 Jan 2022 Place of circulation is substantiallyoutside Singapore.	S21(3)(u)	Webpage on Advertising services GST: Treatment of Advertising Services (PDF, 295KB) GST: Exhibition, Convention và Ancillary Services (PDF, 662KB)
Supplies made on or after 1 Jan 2022New! Services are supplied undera contract with an overseas person và directly benefit either an overseas person or a GST-registered person in Singapore.	Pending amendments
(b) Media Planning	Services are provided contractually to lớn and directly benefiting overseas person*	S21(3)(j)
(c) Creative sầu và Production Sales	Services are provided contractually lớn and directly benefiting overseas person*	S21(3)(j)
(d) Brand Public Relations	Services are provided contractually lớn and directly benefiting overseas person*	S21(3)(j)
(e) Event Organising	Event is held wholly outside Singapore; or Services are provided contractually khổng lồ và directly benefiting overseas person in his business capacity* *With effect from 1 Jan 20trăng tròn, you may also zero-rate your servicessupplied to lớn an overseas person where the servicesdirectly benefit a GST-registered person belonging in Singapore, subject to anyother conditions that may be imposed under section 21(3)(j) or (k).	S21(3)(i);S21(3)(k)


14	Certain services in connection with: the handling of ships or aircraft, orthe handling or storage of goods carried in the ship & aircraft.	The services are prescribed in the Third Schedule of GST (International Services) Order. Please refer lớn paragraph (l) in the extract of Section 21 of the GST Act (PDF, 203KB).	S21(3)(l)	Example for thắng lợi no. 14: You provide handling and storage services within FTZs or designated areas for imported goods or goods khổng lồ be exported. GST Guide for the Aerospace Industry (PDF, 251KB) GST Guide for Logistics Service Industry (PDF, 1327KB) - relevant only for thành tựu no. 14
15	Pilotage, salvage or towage services		S21(3)(m)
16	Services comprising the surveying or classification of any ship and aircraft for the purposes of any register		S21(3)(n)
17	Supply (including the letting & hire) of any ship or aircraft	The ship or aircraft is not leased for the purpose of providing the following services substantially in Singapore: transport of passengers,accommodation,entertainment,catering of food or beverages, oreducation services	S21(3)(o)
18	Certain services comprising the repair, maintenance, broking or management of any ship or aircraft	The services are prescribed in the Sixth Schedule of GST (International Services) Order. Please refer lớn paragraph (p) in the extract of Section 21 of the GST Act (PDF, 203KB).	S21(3)(p)
19	Supply (including the letting or hire) of qualifying aircraft parts	Aircraft parts must be parts and equipment designed và built for exclusive sầu use on an aircraft. They should be certified as airworthy by: a person certificated by a national civil aviation authority (for non-military aircraft); orthe doanhnghiepnet.com.vnernment owning that aircraft (for military aircraft)	S21(3)(x)