MOF Invites the Public to Give Feedback on Changes to the Goods and Services Tax (GST) Act01 Jun 2010
The Ministry of Finance will be conducting a public consultation on the draft GST (Amendment) Bill 2010. This exercise will run from 1 June to 18 June 2010.
2. The draft GST (Amendment) Bill 2010 incorporates the following tax changes:
a) Budget 2010 changes – These are tax changes announced in the 2010 Budget Statement which seek to ease the cash-flow management of businesses and lower their GST compliance costs:
- Expand the scope of zero-rating of GST for the marine and aerospace industry;
- Simplify the accounting of GST on most supplies to the earlier of tax invoice date or payment date;
- Introduce a new scheme to allow approved businesses to defer import GST that is currently payable on goods at the point of their entry into Singapore;
b) Other changes – These changes arise from the ongoing review of the GST regime, and seek to clarify existing GST legislation or to improve GST administration:
- 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;
- 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 valuation of imported goods and thus the levying of import GST;
- Clarify the definition of residential property for the purpose of GST exemption;
- Introduce measures to facilitate the self-assessment of transactions qualifying under the Approved Contract Manufacturer and Trader (ACMT) scheme; and
- Allow the Comptroller of GST to provide for a wider scope of electronic services.
3. The public can access the consultation documents together with the explanations for the draft GST (Amendment) Bill 2010 on the Ministry of Finance's website and the REACH consultation portal. Respondents may send their comments to the Ministry of Finance directly via the website, email, fax or post.
MINISTRY OF FINANCE
1 JUNE 2010