You can zero-rate (i.e. charge GST at 0%) your supply of goods if you are certain that at the point of supply (based on the time of supply for exports) :

  1. The goods supplied will be exported or have been exported; and
  2. You have the required documents to support zero-rating.

To determine the list of documents to be maintained to support the zero-rating of the supply of goods, you have to assess which is the scenario in GST: Guide on Exports (PDF, 805KB) that your export arrangement falls under.

On this page:

Time of supply for exports

For the purpose of zero-rating, the time of supply occurs at the earlier of the following events:

  • Issuance of an invoice
  • Receipt of payment

Direct and indirect exports

A. Direct exports

Occurs when:

  • You have custody of the goods to be exported; and
  • You control the export arrangement.

Direct exports may be zero-rated if the required documents to support zero-rating are maintained within 60 days.

Examples of direct exports

The scenarios listed below are some examples of direct exports:

  • You export the goods via your appointed freight forwarder/handling agent/postal or courier company and invoice your overseas customer.
  • You export the goods via your appointed freight forwarder/handling agent upon instruction of your local customer and invoice your local customer.
  • Your goods are consolidated by your appointed freight forwarder/handling agent before the goods are exported and you invoice your overseas customer.

Please refer to the GST: Guide on Exports (PDF, 805KB) for other direct export scenarios and required documents to support zero-rating for each scenario.

B. Indirect exports

Indirect exports occur when:

  • You do not have custody of the goods to be exported; or
  • You do not have control over the export arrangement.

You must treat the sale as a local standard-rated supply (i.e. charge and account GST at 9%).

Exceptions for indirect exports

However, you can zero-rate the supply of goods if:

  • You are certain at the time of supply that all the goods will be exported; and
  • The required documents to support zero-rating can be maintained within 60 days.

Examples of indirect exports

The scenarios listed below are some examples of indirect exports:

  1. You invoice your overseas customer and deliver the goods to the freight forwarder/handling agent appointed by your overseas customer.
  2. You invoice the overseas customer and instruct your local supplier to deliver the goods to the overseas customer.

Please refer to GST: Guide on Exports (PDF, 805KB) for other indirect export scenarios and the specific documents that must be maintained to support zero-rating for each scenario.

60-day rule for exported goods

When exporting goods, you have up to 60 days from the time of supply to export the goods and collate the required export documents. Failure to do so within this time frame will require you to standard-rate the supply of goods (i.e. charge and account GST at 9%). 

There are exceptions to the 60-day rule. Please refer to the GST: Guide on Exports (PDF, 805KB) for more information.

Documents to support zero-rating

To zero-rate your exports, you are required to maintain the relevant export evidence as listed below.

 

Transaction documents

  • Purchase order from your customer
  • Sales invoice to your customer
  • Delivery note/ packing list endorsed by freight forwarder/ handling agent with:
    1. Name, address and GST registration number (if applicable) of the freight forwarder/ handling agent
    2. Date of collection of goods
    3. A statement "Goods delivered are for export"
  • Insurance documents (if applicable)
  • Evidence of payment received from your customer
  • (For indirect exports only) Written instructions from your customer to deliver the goods to its appointed freight forwarder/ handling agent
  • Any other documents specified by the Comptroller in the GST: Guide on Exports (PDF, 805KB)

Transport documents

For exports via sea or air

  • Bill of lading/ cargo manifest/ mate's receipt (for export via sea), air waybill (for exports via air); or
  • Subsidiary export certificate/ note of shipment issued by freight forwarder or handling agent.

For exports via land

  • Export permit; or
  • Subsidiary export certificate/ note of shipment issued by freight forwarder or handling agent.

And any other documents specified by the Comptroller in the GST: Guide on Exports (PDF, 805KB)

Common errors on output tax 

To learn about the qualifying conditions and the required export documents to be maintained to zero-rate your export of goods, watch the “Exports” chapter (at 1:04min) of this video! There are more videos on commonly made output tax errors available.



Other export scenarios

Hand-Carried Export Scheme (HCES)

It is compulsory for all GST-registered businesses that wish to zero-rate the supply of goods that are hand-carried out of Singapore via Changi International Airport to apply the Hand-Carried Export Scheme (HCES), unless the business has obtained the Comptroller's written apporval to be exempted from HCES.

For more information, please refer to Hand-Carried Exports Scheme.

Supplies to aircrafts

You may zero-rate supplies of stores, fuel and merchandise (for sale by retail to persons on the aircraft) to an aircraft.

For more information, please refer to the GST Guide for the Aerospace Industry (PDF, 361KB).

Supplies to ships

You may zero-rate the sale or lease of goods if the goods are:

  • For use as stores or fuel on a ship
  • For installation on a ship or a ship under construction
  • For use in the maintenance or operation of a ship
  • For sale by retail as merchandise to persons carried on a ship

For more information, please refer to the GST Guide for the Marine Industry (PDF, 477KB).

FAQs

Do I need to issue tax invoices for my zero-rated supplies?

You may issue a tax invoice or any other document to notify your customer of an obligation to pay (e.g. commercial invoice) for your zero-rated supplies.

If you choose to issue a tax invoice, you are required to indicate on the tax invoice that GST is charged at 0%.

Must I apply for export permit before exporting the goods?

Yes. Please refer to the Singapore Customs' webpage on "Export Procedures" for details.

What happens if I do not maintain the required export documents as specified in the e-Tax Guide on Export?

You must standard-rate the supply and account for GST based on the prevailing GST rate.

What if I have lost or misplaced my export documents?

You should obtain a duplicate copy from the issuer of the documents. The replacement document must be marked "COPY - For GST purposes" and be dated and authenticated by an official of the issuing company.

Can I zero-rate the supply if the details of the goods shown on the export documents (e.g. export permit) do not match with the details shown on other documents (e.g. the invoice issued to my customer)?

No. You are required to standard-rate the supply (and account for GST based on the prevailing GST rate) if your export documents do not substantiate that the goods were exported.

I deliver the goods to my local customer to a location in Singapore. My customer tells me that the goods will subsequently be sold and exported to an overseas customer. Can I zero-rate the sale to my local customer?

No. You are required to standard-rate (charge and account for GST based on the prevailing GST rate) your local sale to your customer.

My overseas customer (Y) has appointed a local freight forwarder (Z) to consolidate and export their goods. If I deliver my goods to Z for consolidation before exporting the goods to Y, can I zero-rate my supply to Y?

This is an indirect export scenario. If you do not have custody of the goods and control over the export arrangement, you should standard-rate your supply to Y. 

However, if at the time of supply, you are certain that all the goods will be exported and you maintain all the export evidence required for the relevant export scenario in GST: Guide on Exports (PDF, 805KB) within 60 days from the time of supply, you may zero-rate your supply to Y.

I sell goods to an overseas company but the goods are delivered to a local person (carrier) who is an employee of the overseas company. The goods will be hand-carried out of Singapore by the carrier. Can I zero-rate my supply to the overseas company?

To zero-rate the supply of goods, you must maintain the required export evidence listed in:

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