Your supply of advertising service attracts GST unless it qualifies for zero-rating as an international service under section 21(3) of the GST Act. The GST treatment for advertising services is based on the nature of services.
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The table below summarises the GST treatment for advertising and related services commonly supplied by media owners, media agencies and other suppliers in the advertising industry.
| Types of advertising services | GST Treatment |
Media Sales E.g. Sale of airtime, advertising space and web media space in various media modes | With effect from 1 Jan 2022 The GST treatment depends on the belonging status of the contracting party and the party directly benefitting from the service (“direct beneficiary”) Contract with a local customer Standard-rate Contract with an overseas customer Zero-rated under Section 21(3)(j) of the GST Act if the service directly benefits an overseas person and/or GST-registered person in Singapore. Otherwise, the service has to be standard-rated. The Comptroller considers your contractual client as the sole direct beneficiary of the services if the two conditions are met:
Prior to 1 Jan 2022 The GST treatment depends on the place of circulation of the advertisement Local circulation Overseas circulation Mixed circulation |
Media planning E.g. Consultation and advisory services involving the choice of media, timing, frequency, etc. to optimise client’s media investment | The GST treatment depends on the belonging status of the contracting party and direct beneficiary Contract with a local customer Standard-rate Contract with an overseas customer Zero-rate under section 21(3)(j) of the GST Act if the service directly benefits an overseas person and/or a GST-registered person in Singapore. Otherwise, the service has to be standard-rated. |
Creative & production sales E.g. Services that involve designing and producing the advertising artwork | |
Brand public relations E.g. Public Relations consultation and management of reputation and relationships. | |
Event organising E.g. Organising exhibitions or conventions for promotional campaigns | The GST treatment depends on where the exhibition or convention is held Held overseas Held in Singapore Otherwise, the service has to be standard-rated. |
FAQs
I am a local publisher of a magazine (hardcopy) which is circulated in Singapore and overseas. A customer places an advertisement in an issue of the magazine. Do I need to charge GST on my provision of advertising space to my customer?
With effect from 1 Jan 2022, the GST treatment for supplies of media sales (including the supply of advertising space in your magazine) will depend on the belonging status of the customer (i.e. contractual party) and the direct beneficiary.
If you contract with an overseas customer and your supply directly benefits either an overseas person or a GST-registered person in Singapore, your supply of advertising space to the overseas customer can be zero-rated.
Conversely, if you contract with a local customer, the entire supply of advertising space must be standard-rated.
Prior to 1 Jan 2022, the GST treatment of your supply of advertising space in your magazine will depend on the place of circulation of the magazine, regardless whether the customer belongs in Singapore or overseas:
- If at least 51% of the total circulation is outside Singapore, you can zero-rate the entire supply of advertising space to your customer under section 21(3)(u) of the GST Act.
- If less than 51% of the circulation is outside Singapore, you must standard-rate the entire value of supply of advertising space to your customer.
- The 51% rule of circulation applies only to magazine of the same language, version and edition for distribution to multiple countries. It is determined based on expected volume of the circulation in each country or average actual circulation if there is an established track record.