What is the term for the sale of an exported good at a price lower that charged for the same good in the home market of the exporter?

Time of Supply for Exports

For the purpose of zero-rating, the time of supply occurs at the earlier of the following events:

• When an invoice is issued
• When payment is received

Direct and Indirect Exports

A. Direct Exports

• You have custody of the goods to be exported; and
• You control the export arrangement.

Direct exports may be zero-rated if the required documents to support zero-rating are maintained within 60 days.

The scenarios listed below are some examples of direct exports:

• You export the goods via your freight forwarder/handling agent/postal or courier company and invoice your overseas customer.
• You export the goods via your freight forwarder/handling agent upon instruction of your local customer and invoice your local customer.
• Your goods are consolidated by your freight forwarder/handling agent before the goods are exported and you invoice your overseas customer.

Please refer to the GST: A Guide on Exports (PDF, 717KB) for other direct export scenarios and required documents to support zero-rating for each scenario.

B. Indirect Exports

Unlike direct exports, indirect exports occur when:

• You do not have custody of the goods to be exported; and
• You have no control over the export arrangement.

You must treat the sale as a local supply and charge GST accordingly.

Exceptions for Indirect Exports

You can only zero-rate the supply of goods if you are certain at the time of supply that all the goods will be exported and the required documents to support zero-rating can be maintained within 60 days.

The scenarios listed below provide examples of indirect exports:

1. You invoice your overseas customer and deliver the goods to the freight forwarder/handling agent appointed by your overseas customer.
2. You invoice the overseas customer and instruct your local supplier to deliver the goods to the overseas customer.

Please refer to GST: A Guide on Exports  (PDF, 717KB) for other indirect export scenarios and required documents to support zero-rating for each scenario.

60-Day Rule for Exported Goods

When exporting goods, you have up to 60 days from the time of supply to export the goods and collate the required export documents.

If you are unable to export the goods or obtain all documents within the 60-day period, you will have to standard-rate the supply of goods and charge GST.

Documents to Support Zero-Rating

To zero-rate your exports, you are required to maintain the relevant export evidence. Please maintain all transaction and transport documents as listed below.

• Delivery note/packing list endorsed by the freight forwarder/handling agent with:
  1. a statement stating that "goods delivered are for export"
  2. name, address and GST registration number. (if applicable) of the freight forwarder/handling agent
  3. date of collection of goods
• Evidence of payment received from your customer
  
• Insurance documents (if applicable) with details of the shipment
• Purchase order from your customer
• Sales invoice to your customer
• Written instructions from your customer to deliver the goods to his freight forwarder/handling agent (for indirect exports)
• Any other documents specified by the Comptroller in the GST: A Guide on Exports  (PDF, 717KB)

For exports via sea or air

Bill of lading/airway bill/cargo manifest/mate's receipt or subsidiary export certificate/note of shipment issued by freight forwarder/handling agent

For exports via land

Export permit or subsidiary export certificate/note of shipment issued by freight forwarder/handling agent

Any other documents specified by the Comptroller in the GST: A Guide on Exports (PDF, 717KB)

Other Export Scenarios

Hand-Carried Export Scheme (HCES)

The Hand-Carried Export Scheme or HCES is compulsory for all GST-registered persons who export their goods by hand-carrying them out of Singapore via Changi International Airport and want to zero-rate the goods being carried out.

For more information, please refer to Hand-Carried Exports Scheme .

Supplies to Aircrafts

You may zero-rate supplies of stores, fuel and merchandise (for sale by retail to persons on the aircraft) to an aircraft.

For more information, please refer to the GST Guide for the Aerospace Industry (PDF, 251KB).

Supplies to Ships

You may zero-rate the sale or lease of goods where the Comptroller is satisfied that the goods are:

• For use as stores or fuel on a ship
• For installation on a ship or a ship under construction
• For use in the maintenance or operation of a ship
• For sale by retail as merchandise to persons carried on a ship

For more information, please refer to the e-Tax guide on GST Guide for the Marine Industry (PDF, 297KB).

FAQs

You may issue a tax invoice or other document to notify an obligation to pay (e.g. commercial invoice) for your zero-rated supplies. If you choose to issue a tax invoice, you are required to indicate that GST is charged at 0% on the tax invoice.

Yes. From 1 Apr 2013, Singapore Customs requires all declarations to be submitted before the goods are exported, including non-controlled and non-dutiable goods exported by sea and air.

Singapore Customs has termed this requirement as Advance Export Declaration.

For details on import and export documentation procedure, please refer to the  Singapore Customs website .