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Does a company need to charge GST if part of the service is performed outside Singapore?

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3 Answers

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the service that is rendered overseas is likely to be zero-rated. gst is mainly for good/services that are 'consumed' in sg.

but to be sure, u should contact iras. they do answer such questions over the phone.

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I disagree with bt220 on zero rated. Zero rate only applies if we are talking about exports of products or services.

In this case, the service is rendered outside Singapore and it will fall under out of scope category. No GST is required.

Even though there is no cash flow impact in terms of zero rated or out of scope, there is a compliance issue in terms of accurate filing.

The potential agrument point is if the services are provided to a SIngapore company, why are a portion of the services performed outside Singapore. If the Singapore based customer is able to enjoy the benefits even if it is performed outside Singapore, i will think that GST will be applicable because you are directly providing a service to a Singapore company.

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So if a Singapore company is providing services to a non-Singapore company outside of Singapore, then is it clear cut that no GST should be charged? – Edmund Tay♦ Nov 13 at 10:45
I will say Yes. From a commerical point of view, your customer outside Singapore will not want to pay extra taxes like GST when they cant even claim back. – Little Biscuit Nov 13 at 10:50
To expand further, not only you do not need to charge GST, you should not even mentioned GST (except for GST registration number) on your invoice which many SMEs have wrongly performed at many occasion. By stating GST, you are implying that it is zero rated GST. – Little Biscuit Nov 13 at 10:54
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More information at IRAS site on What is goods and services tax (GST). You will be able to find more information from the links there.

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