Aim
This guide serves to:
• Explain the GST principles relevant to the logistics service industry; and
• Clarify the GST treatment of some of the more common services provided by businesses in the logistics service industry
You should read this guide if you are GST-registered and are in the business of providing logistics services such as transportation, goods handling (e.g. labeling, re-packing, inventory control, etc) and storage of goods.
Background
Services provided by logistics businesses
In the logistics service business, there are three main categories of services:
• Transportation Services (including ancillary handling activities such as stuffing, loading and unloading)
• Handling Services
• Storage Services
The transportation, handling and storage services may be provided in any of the three main geographical regions:
• Outside Singapore;
• Within the Free Trade Zones (FTZs) or designated areas of a port, terminal and airport (hereafter referred as “designated areas”); or
• Within Singapore (including Zero-GST/Licensed/Bonded warehouses) but outside the FTZs or designated areas.
Annex A shows the list of FTZs and Designated Areas. Annex B lists some
examples of the logistics services provided in each of these three
geographical regions.
Source: gov.sg
