| NO. |
TAX CHANGE |
DESCRIPTION AND REASON FOR CHANGE |
AMENDMENT TO GST ACT |
DETAILS OF AMENDMENT |
| 1 |
Repayment of input tax by the customer (debtor) who has claimed the input tax but fails to pay the supplier the consideration by a certain date |
The customer (debtor) will be required to adjust and repay his input tax for the amount that he already claimed, if he fails to pay the supplier the full consideration, or any part thereof, 12 months from the date of supply or due date of payment, whichever is the later.
The amendment facilitates compliance for the customer (debtor) to determine when to adjust and repay his input tax, regardless of whether the supplier has claimed bad debt relief. This is on the basis that the customer knows best whether payment is made towards his debt. It also eases compliance for the supplier as he need not inform his customer (debtor) of the bad debt relief. |
Section 19[Clause 2]
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Clause 2 deletes subsection (12) of section 19 and substitutes new subsections (12) and (12A). The new subsections require a taxable person who:
- has failed to pay his supplier the consideration or any part thereof for the supply of goods or services made by his supplier to him; and
- has credited the input tax relating to the consideration or the part thereof against his output tax,
to account and repay to IRAS, in certain circumstances, an amount equal to such input tax. |
| 2 |
Zero-rating of maintenance, repair and broking services of ships and aircraft |
Since maintenance, repair and broking services which are directly related to ships or aircraft are effectively internationally bound, it is not necessary to restrict zero-rating of such services only where they are provided to the owner, operator or agent. The GST Act will be amended to remove this requirement.
However, management services, in relation to any ship or aircraft, must still be provided to the owner, operator or agent of the ship or aircraft before such services can be zero-rated. |
Section 21(3)Clause 3
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Clause 3 amends section 21(3). The clause deletes and substitutes paragraph (p) to enable the Minister to prescribe the types of services comprising the repair, maintenance, broking or management of any ship or aircraft which are to be treated as international services for purposes of the Act. |
| 3 |
Zero-rating of electronic services pertaining to trade declarations for import and export of goods |
A new paragraph is added under 21(3) so that zero-rating is extended to electronic services for trade declarations for the import and export of goods via land, in addition to via air and sea. |
Section 21(3)Clause 3
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Clause 3 also introduces a new paragraph (t) which enables the Minister to prescribe the types of services in connection with the provision of an electronic system relating to the import of goods into or the export of goods out of Singapore which are to be treated as international services for the purposes of the Act. |
| 4 |
Compulsory electronic filing of returns |
The GST Act will be amended to prescribe electronic filing as the only mode of filing, from a date to be announced by the Minister through gazette notification. |
Section 21(3)Clause 3
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Clause 4 deletes paragraph (b) of section 41(4) and substitutes new paragraphs (b), (ba) and (bb). The new paragraphs re-enact the existing paragraph (b), with the new paragraph (ba) clarifying that regulations may be made —
- to require the compulsory making and submission of returns through the electronic service provided by the Comptroller of Goods and Services Tax under section 42; and
- to provide for any procedure for the making and submission of returns through such electronic service.
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