Zero-Rated Supplies: Generally, international services are treated as zero-rated supplies under Singapore’s GST law. This means that while these services are subject to GST, the rate applied is 0%.
Criteria for Zero-Rating: For a service to qualify as an international service and be zero-rated, it must meet certain criteria:
The service is provided to a person who belongs outside Singapore.
The service is not directly in connection with land or goods located in Singapore at the time the service is performed.
Additional specific criteria for different types of services, as outlined in the GST Act.
Documentation and Compliance: Businesses must maintain appropriate documentation to prove that their services meet the criteria for zero-rating. This is crucial for audit and compliance purposes.
Waiver from filing GST returns: The primary criterion for a waiver is that a significant portion of the business’s supplies must be zero-rated. In Singapore, the general threshold is that at least 90% of the total supplies must be zero-rated.
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