Out-of-scope supplies refer to supplies which fall outside the scope of the GST Act.
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GST does not need to be charged on out-of-scope supplies and such supplies need not be reported in the GST return.
Out-of-scope supplies include sale of goods not brought into Singapore, sales of overseas goods made within the Free Trade Zone and Zero GST Warehouses, and private transactions.
Sale of goods not brought into Singapore
Sale of goods that are delivered from a place outside Singapore to another place outside Singapore. Such supplies are considered to be out-of-scope supplies; they are not subject to GST and need not be reported in the GST return.
Example of sales of goods not brought into Singapore
Local company A sells chocolates to local company B. The chocolates are shipped directly from Company A's factory in China to Company B's branch in Japan. The sale of chocolates is an out-of-scope supply.
Supporting documents for sale of goods not brought into Singapore
- Purchase order indicating the delivery terms, collection details and shipping location.
- Written instructions to your supplier (where applicable) and from your customer.
- Transport documents showing that the goods were delivered from one country to another country outside Singapore (e.g. Bill of lading, airway bill, export permit, cargo manifest, mate's receipt, parcel despatch note, courier consignment note).
- Other transport documents to show the collection of goods (E.g. Third party delivery notes endorsed by the person collecting / receiving the goods, land transport order / documents provided by the third party transport provider if the delivery is by land).
- Invoice to your customer.
- Evidence of payment received from your customer.
Sales made within Free Trade Zone (FTZ)
Free Trade Zones are designated areas in Singapore where the payment of duties and taxes (e.g. GST) are suspended when goods arrive in Singapore and are stored in the FTZ.
The supply of such goods from outside Singapore - overseas goods - within the FTZ is an out-of-scope supply under the GST Act. The supply is not subject to GST and need not be reported in the GST return.
Example of goods sold within the FTZ
Company A has imported goods from overseas and stored them in the FTZ. Company A then sells the goods to Company B which received the goods within the FTZ.
The sale of goods is an out-of-scope supply and the supply is not subject to GST.
When the goods are subsequently removed from the FTZ by Company B, GST may be chargeable. Please refer to the GST Guide for Free Trade Zones (FTZs), Warehouses and Excise Factories (PDF, 178KB).
Supporting documents for goods sold within the FTZ
- Purchase order indicating the delivery terms, collection details and shipping location.
- Delivery order endorsed by the person collecting / receiving the goods, where application. The delivery order should state precisely the place of delivery of the goods and must be endorsed by the buyer and the person receiving the goods in the FTZ.
- Copy of the warehouse receipt note / goods received note, issued and endorsed by warehouse operator in FTZ, where applicable.
- Permits taken up with Singapore Customs when the goods were moved into the FTZ.
- Invoice to your customer.
- Evidence of payment received from your customer.
Sales made within Zero GST Warehouse
A Zero GST (ZG) Warehouse is a designated area approved by Singapore Customs for the storage of overseas goods. If you operate a ZG Warehouse under the ZG Warehouse Scheme, you can import non-dutiable overseas goods into the ZG Warehouse with GST suspended.
When overseas goods are supplied within the ZG Warehouse, it is an out-of-scope supply. The supply is not subject to GST and need not be reported in the GST return.
Example of sales within a ZG Warehouse
Company A has imported goods into a ZG Warehouse. Company A then sells the goods to Company B which receives the goods within the ZG warehouse.
The sale of goods is an out-of-scope supply and the supply is not subject to GST.
If your goods are subsequently removed from the ZG Warehouse, there may be GST implications. Please refer to the GST Guide for Free Trade Zones (FTZs), Warehouses and Excise Factories (PDF, 178KB).
Supporting documents for sales made within a ZG Warehouse
- Purchase order indicating the delivery terms, collection details and shipping location.
- Delivery order endorsed by the person collecting / receiving the goods, where applicable. The delivery order should state precisely the place of delivery of the goods and must be endorsed by the buyer and the person receiving the goods in the ZG warehouse.
- Copy of the warehouse receipt note / goods received note, issued and endorsed by warehouse operator in the ZG warehouse, where applicable.
- Permits taken up with Singapore Customs when the goods were moved into the ZG warehouse.
- Invoice to your customer.
- Evidence of payment received from your customer.
Private transactions
Private transactions are defined as non-business activities performed without payment or any expectation of return from the recipients. For example, if you help to clear your neighbour's garden of weeds over the weekend.
Private transactions are out-of-scope supplies. They are not subject to GST and need not be reported in the GST return.