This Alert summarizes recent developments with respect to Singapore’s Goods and Services Tax (GST). These changes may impact businesses worldwide and will be effective as noted below.
Media sales
In Budget 2021, the Singapore Minister for Finance announced that the basis for determining whether zero-rating applies to a supply of media sales will be changed as of 1 January 2022 from the place of circulation of the advertisement to the place where the customer and direct beneficiary of the service reside. The change is made in recognition of the growth in online advertising and the compliance difficulties faced by businesses in determining the place of circulation of advertisements, especially for online media sales.
In light of the above, the Inland Revenue Authority of Singapore (IRAS) updated the e-Tax Guide GST: Guide for Advertising Industry on 11 June 2021 to provide guidance on these upcoming changes.
Source EY
