Summary of responses - Public Consultation on Draft Goods and Services Tax (Amendment) Bill 2014

Date: 27 August 2014

Twenty suggestions received on the draft Goods and Services Tax (Amendment) Bill 2014

The Ministry of Finance received 20 suggestions on the draft Goods and Services Tax (Amendment) Bill 2014 and the related subsidiary legislation during a public consultation exercise held from 11 June to 1 July 2014. Twelve suggestions were accepted and will be incorporated into the revised Goods and Services Tax (Amendment) Bill 2014 and related subsidiary legislations, or IRAS’ e-tax guides and website. The remaining suggestions were not accepted for implementation as they were inconsistent with the policy objectives for the proposed changes.

2. The draft Goods and Services Tax (Amendment) Bill 2014 contains proposed legislation to implement changes arising from our periodic review of the Goods and Services Tax (GST) system and administration. The changes are as follows:

a) Allowing GST-registered persons to fully claim GST on re-import of goods belonging to their customers. To facilitate outsourcing arrangements, GST-registered persons who send their customers’ goods overseas for value-adding activities will be able to fully claim the GST incurred on re-import of such goods;

b) Providing for non-legal entities (e.g. partnership, society) to claim and account for GST on goods, land, buildings and intellectual properties (hereinafter collectively referred to as “properties”). If GST-registered non-legal entities hold properties which they use for their businesses through bare trustees, they will be:
(i) Allowed to claim GST incurred on acquisitions of such properties; and
(ii) Required to account for GST on supplies of such properties.

c) Clarifying the scope of GST zero-rating in relation to goods for use or installation on ships. This is a technical change to clarify that the GST zero-rating provision applies only to the sale or rental of goods that are used or installed on ships, and not to services such as procurement or logistics services relating to these goods.

3. Most of the suggestions received focused on changes a) and b). A summary of the key suggestions received, along with MOF’s responses, can be found in the Annex.

4. MOF would like to thank all respondents for their suggestions.

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Issued by Ministry of Finance
Singapore
27 August 2014

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About Ministry of Finance
The Ministry of Finance aims to advance the well-being and development of Singapore through Finance. The Ministry strives to achieve a balanced budget through prudent fiscal policy, foster a regulatory environment conducive to business and enterprise, ensure prudent investment of the Government's reserves and other public funds, and sets policies for government procurement, e-government, customs regulation, accounting standards and business regulation.

We achieve this together with our departments (Accountant-General’s Department, Centre for Public Project Management, Singapore Customs and Vital – Centre for Shared Services), and statutory boards (Accounting & Corporate Regulatory Authority, Inland Revenue Authority of Singapore and Tote Board).

For more information, please visit

www.mof.gov.sg