MOF conducts public consultation on draft Goods and Services Tax (Amendment) Bill 2010: Implementing Budget 2010 changes | Practical Law

MOF conducts public consultation on draft Goods and Services Tax (Amendment) Bill 2010: Implementing Budget 2010 changes | Practical Law

This article is part of the PLC Global Finance July e-mail update for Singapore.

MOF conducts public consultation on draft Goods and Services Tax (Amendment) Bill 2010: Implementing Budget 2010 changes

by Allen & Gledhill LLP
Published on 29 Jul 2010 • Singapore
This article is part of the PLC Global Finance July e-mail update for Singapore.
Speedread

Speedread

From 1 June 2010 to 18 June 2010, the Ministry of Finance (MOF) conducted a public consultation on a draft Goods and Services Tax (Amendment) Bill 2010 (draft Bill). The draft Bill seeks to implement the goods and services tax (GST) changes announced in the Budget 2010 Statement, as well as other changes. Key proposals in the consultation are outlined here.
From 1 June 2010 to 18 June 2010, the Ministry of Finance (MOF) conducted a public consultation on a draft Goods and Services Tax (Amendment) Bill 2010 (draft Bill).
The draft Bill seeks to implement the goods and services tax (GST) changes announced in the Budget 2010 Statement, as well as other changes. The primary aim of the exercise was to obtain feedback on the draft legislation.

Scope of consultation exercise

The draft Bill covers Budget 2010 changes as well as other changes to existing tax policies and administration resulting from an ongoing review of the GST system. The following are the proposed tax changes:
Budget 2010 changes. These changes 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.
Other changes. These changes seek to clarify existing GST legislation or improve GST administration:
  • Clarify that GST is not chargeable on:
    • imported goods that are supplied and remain within free trade zones, zero-GST or licensed warehouses; and
    • goods that are locally manufactured, supplied and remain within warehouses licensed under the Customs Act.
  • Update the Goods and Services Tax 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 scheme.
  • Allow the Comptroller of Goods and Services Tax to provide for a wider scope of electronic services.

Reference materials

As part of the consultation process, the MOF issued the following materials, which are available on its website: