Q:
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What is out-of-scope supplies?
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A:
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Out-of-scope supplies include third country sales, sales of overseas goods made within the Free Trade Zone and Zero GST Warehouses, and private transactions. Since these supplies fall outside the scope of Goods & Services Tax (GST), GST is not chargeable on these supplies.
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Q:
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What is Third Country Sales?
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A:
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Third country sales refer to sales of goods that are delivered from a place outside Singapore to another place outside Singapore. Such supplies are considered to be out-of-scope supplies; they are not subject to GST and need not be reported in the GST return.
For example: Local company A sells chocolates to local company B. The chocolates are shipped directly from Company A's factory in China to Company B's branch in Japan. The sale of chocolates is an out-of-scope supply.
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Q:
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What is sales made within Free Trade Zone (FTZ)?
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A:
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Free Trade Zones are designated areas in Singapore where the payment of duties and taxes (e.g. GST) are suspended when goods arrive in Singapore and are stored in the FTZ. The supply of such goods from outside Singapore - overseas goods - within the FTZ is an out-of-scope supply under the GST Act.
For example: Company A has imported goods from overseas and stored them in the FTZ. Company A then sells the goods to Company B which received the goods within the FTZ. The sale of goods is an out-of-scope supply and the supply is not subject to GST.When the goods are subsequently removed from the FTZ by Company B, GST may be chargeable.
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Q:
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What is sales made within Zero GST Warehouse?
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A:
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A Zero GST (ZG) Warehouse is a designated area approved by Singapore Customs for the storage of overseas goods. If you operate a ZG Warehouse under the ZG Warehouse Scheme, you can import non-dutiable overseas goods into the ZG Warehouse with GST suspended. When overseas goods are supplied within the ZG Warehouse, it is an out-of-scope supply.
For example: Company A has imported goods into a ZG Warehouse. Company A then sells the goods to Company B which receives the goods within the ZG warehouse. The sale of goods is an out-of-scope supply and the supply is not subject to GST. If your goods are subsequently removed from the ZG Warehouse, there may be GST implications.
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FAQ
