1. The Ministry of Finance is seeking public feedback on the draft Goods and Services Tax (Amendment) Bill 2010. The Bill sets out the proposed legislative amendments to the Goods and Services Tax (GST) Act. We invite you to contribute comments on the proposed amendments.
2. Your feedback will be important in helping us improve the draft legislation with regard to its clarity or its implications for efficiency of compliance by taxpayers. The policies behind the changes, as announced in Budget 2010 Statement were adopted after feedback and debate in Parliament. The other changes have either been adopted after consultation with the relevant businesses, or aim to clarify the law with no changes in policy or practice. The primary aim of this exercise is therefore to obtain feedback on the drafting of the legislation.
SCOPE OF THE CONSULTATION EXERCISE
3. The draft GST (Amendment) Bill 2010 covers Budget 2010 changes as well as other changes to existing tax policies and administration resulting from on-going review of the GST system. The tax changes are summarised is as follows:
Budget 2010 changes:
a. expand the scope of zero-rating of GST for the marine and aerospace industry;
b. simplify the accounting of GST on most supplies to the earlier of tax invoice date or payment date;
c. introduce a new scheme to allow approved businesses to defer import GST that is currently payable on goods at the point of entry into Singapore;
d. clarify that GST is not chargeable on
(i) imported goods that are supplied and remain within Free Trade Zones, Zero-GST or Licensed Warehouses and (ii) goods that are locally manufactured, supplied and remain within warehouses licensed under the Customs Act;
e. update the GST Act to align with the methods of valuation as prescribed in Customs legislation or the last selling price, where applicable, for the purpose of valuing imported goods and thus levying import GST;
f. clarify the definition of residential property for the purpose of GST exemption;
g. facilitate the self-assessment of transactions qualifying under the Approved Contract Manufacturer and Trader (ACMT) scheme; and
h. allow the Comptroller of GST to provide for a wider scope of electronic services.
4. The summary table lists all the tax changes and explains the amendments to the GST Act.
5. We would appreciate your full support to ensure that the consultation exercise is effective. Respondents are requested to follow these guidelines:
a. Identify yourself as well as the organisation you represent (if any) so that we may follow up to clarify any issues, if necessary;
b. Make your comments clear and concise;
c. Use the prescribed template provided to help us understand your feedback better;
d. Focus your comments on how the legislative amendments can be better written to make them clearer or to ease GST compliance; and
e. Explain your points with illustrations, examples, data or alternative formulations of the amendments as far as possible.
6. This draft legislation is released only for the purpose of consultation and should therefore not be used for individual or business decisions as it does not represent the final legislation or regulations. All comments received during the consultation will be reviewed thoroughly and, if accepted, will be incorporated in the Bill for subsequent introduction in Parliament.
PERIOD OF CONSULTATION
7. The draft GST (Amendment) Bill 2010 together with the draft subsidiary legislations for the changes in paragraphs 3 (b), (c) and (f) are available for public consultation from 1 June 2010 to 18 Jun 2010. Comments received after 18 Jun 2010 will not be considered as they will be too late for incorporation into the final Bill.
8. We encourage all interested participants to submit your comments via our online submission form. Using this online submission form is the easiest and quickest way for your comments to reach us for consideration.
You can also send us your comments, using the prescribed template, through:
a. email to email@example.com; or
b. fax to 6337 4134; or
c. post to: Ministry of Finance
100 High Street, #10-01
SUMMARY OF RESPONSE
9. We will publish on this website a summary of the main comments we receive together with our responses by August 2010. The summary will not disclose the identity of respondents, and will not separately address or acknowledge every comment received.
DOCUMENTS TO DOWNLOAD
10. For your convenience, the relevant documents relating to this public consultation exercise can be downloaded for further reference.