Exports of goods from Singapore are zero-rated for GST when the goods leave Singapore and you hold proof of export. Imports attract GST at 9 % at the border, which a registered importer can usually claim back as input tax. IRAS reviews the evidence, so documents matter as much as the tax rate.
Zero-rating means a supply is taxable at 0 percent. The seller charges no GST to the overseas customer, but the sale still counts as a taxable supply, so the seller can claim input tax on related purchases. This is different from an exempt supply, where no input tax can be claimed. For example, a Singapore trader who sells machinery to a Thai customer zero-rates the invoice only after the permit and bill of lading confirm the machine left the country.
For goods, the main conditions are that the goods are exported from Singapore, that the export happens within the time allowed after the sale, and that the seller holds the required documents. For services, the rules depend on what the service is and who benefits from it.
The tax point and the export date can fall in different periods. Agree internally which date is used for the return and apply it consistently.
Zero-rating is not a free choice. If conditions are not met, the supply is standard-rated at 9 percent, and the seller owes the tax.
IRAS expects a set of documents for each export: the commercial invoice, the customs export permit, the shipping document such as a bill of lading or airway bill, and proof of payment or of the contract with the overseas buyer. The set should show the same goods, quantities and consignee.
Keep the documents together under the invoice number. When a reviewer asks about one sale, a folder with the invoice, permit and transport document answers the question in one email.
If goods are collected by the buyer's agent in Singapore, the risk is higher. The documents must still show that the goods were exported, such as a permit and a carrier receipt. Verbal assurances will not do. A scanned copy of a signed delivery note from the carrier is more convincing than an email stating the goods were shipped.
Where evidence is missing, IRAS can treat the sale as standard-rated, assess the 9 percent GST and impose a penalty. Prevention is cheaper than correction.
GST on imported goods is calculated on the customs value plus duty and certain costs, and it is paid when the permit is cleared. The importer who holds the permit can claim it as input tax, subject to the usual rules, if registered. Include freight and insurance when they form part of the customs value, as the Customs Act requires.
Cash flow can be a problem for traders who import and re-export. Schemes exist that suspend import GST for qualifying businesses, such as the Major Exporter Scheme, and zero-GST warehouses for goods in storage. Eligibility is set by IRAS and Singapore Customs, so apply before you rely on them.
Declare the correct value. Under-declaring to reduce GST can lead to penalties from Customs, and an inconsistent value between the permit and the supplier invoice will be noticed.
Keep the import permit with the supplier invoice. It is the document that supports your input tax claim.
Qualifying international services supplied to an overseas business customer can be zero-rated under specific provisions of the GST Act. The conditions vary by service: the customer must be outside Singapore, and the service must not directly benefit a person in Singapore. Software, consulting, design and advertising services are common examples that need case-by-case analysis.
A consultancy report delivered to a Malaysian company is a different case from a repair carried out on goods in Singapore. The nature of the supply decides the treatment, not the customer's address alone.
Keep a short note in each file explaining why zero-rating applies, with the contract and evidence of the customer's overseas status, such as a company registration extract. A reviewer wants to see your reasoning.
If in doubt, ask IRAS or your adviser. A wrong zero-rating decision applies to every invoice you issue under the same assumption.
IRAS often queries returns where zero-rated sales rise sharply, or where refunds are claimed repeatedly. A business that exports in volume should be ready with a sample file for any month.
Mismatches between permits, invoices and the GST return are another trigger. The export value on the permit should reconcile with the zero-rated supplies reported, allowing for timing differences that you can explain.
Credit notes and returns of goods can disturb the figures. A returned shipment may involve import GST, a credit note and a new export. Record each step separately. Add a note explaining each such movement, because a reviewer will otherwise assume an error.
Prepare a short reconciliation each quarter: zero-rated sales per the ledger, per the permits and per the return. Reviews usually start from refund claims, so a business that is in a net refund position every period should expect to be asked for its documents.
4invoices.net produces PDF invoices with the rate you enter and keeps an archive, so you can find the invoice that sits behind a permit. 4hosting.net provides web hosting and VPS in EU data centres, which may matter if you keep customer data for exports.
4invoices does not decide GST rates by customer country and does not link to TradeNet or Singapore Customs. Zero-rating, permits and evidence remain your responsibility, with IRAS and Singapore Customs.
Keep the folder structure identical for every export. A reviewer who sees the same layout each time spends less time and asks fewer follow-up questions.
Export invoices are accidentally issued with 9 % GST — overstating the price for the overseas customer and creating an IRAS correction backlog when the error is discovered at the F5 filing.
Apply zero-rating to exports yourself after checking the IRAS conditions, and keep proof of export. 4invoices does not decide GST rates by customer country and does not link to TradeNet.
Export evidence — shipping documents, customs export permit, proof of payment — is held across different folders and is unavailable when IRAS requests supporting documentation during a compliance review.
Keep your export evidence (permit, shipping documents, proof of payment) together with the matching PDF invoice in your own filing. The 4b2b products do not link permits to invoices or assemble an audit package.
When the goods are exported from Singapore, the export happens within the allowed time after the sale, and the seller holds the required evidence, including the export permit, the transport document and the invoice. If any condition fails, the supply is standard-rated at 9 percent, so assemble the evidence before you issue the invoice.
Usually the commercial invoice, the customs export permit, the bill of lading or airway bill, and proof of payment or the sales contract. The documents must agree on goods, quantity and consignee. Keep them together by invoice number for at least five years, so you can respond quickly to a review.
Yes, GST at 9 percent is normally due on the import value at the time of customs clearance. A GST-registered importer can generally claim it back as input tax on the return, with the import permit as evidence. Schemes for suspension of import GST exist for qualifying businesses, so ask IRAS about eligibility.
Sometimes. Qualifying international services supplied to a business customer outside Singapore may be zero-rated if the conditions are met, including that the service does not directly benefit someone in Singapore. The rule depends on the type of service, so check the GST Act provisions with IRAS or your adviser and keep evidence.
Correct it with a credit note and a new invoice, and adjust your GST return for the period. Tell the customer, since they paid tax they may not owe. If the error affects several returns, consider voluntary disclosure to IRAS, and fix the invoice template that caused the mistake so it does not repeat in later periods.
PDF invoices and an invoice archive. Zero-rating and TradeNet permits are handled with IRAS and Singapore Customs.
