Zero-rating of supplies relating to aircraft and the Approved Import GST Suspension Scheme (AISS)
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Definition of aircraft
For GST purposes, an aircraft refers to one which is:
- Wholly used or intended to be wholly used for travel:
a. from a place outside Singapore to another place outside Singapore;
b. from a place in Singapore to a place outside Singapore: or
c. from a place outside Singapore to a place in Singapore; or A military aircraft.
Zero-rating of supplies relating to aircraft
The following is a list of international services under Section 21(3) of the GST Act performed in connection with an aircraft that qualify for zero-rating.
Handling of aircraft or goods carried in aircraft
Certain services in connection with:
- the handling of aircraft; or
- the handling or storage of goods carried in the aircraft.
Qualifying criteria to zero-rate
The services are prescribed in the Third Schedule of GST (International Services) Order. Please refer to paragraph (l) in the extract of Section 21 of the GST Act (PDF, 203KB).
The services must be provided within any Free Trade Zone or designated area of an airport.
Relevant section for zero-rating
S21(3)(l) of the GST Act
Pilotage, salvage or towage services
Qualifying criteria to zero-rate
No applicable criteria.
Relevant section for zero-rating
S21(3)(m) of the GST Act
Surveying or classification services
Services comprising the surveying or classification of any aircraft for the purposes of any register.
Qualifying criteria to zero-rate
Relevant section for zero-rating
S21(3)(n) of the GST Act
Supply (including letting or hire) of any aircraft
Qualifying criteria to zero-rate
The aircraft is not leased for the purpose of providing such services performed substantially in Singapore:
- transportation;
- accommodation;
- entertainment;
- catering of food or beverages; or
- education services.
Relevant section for zero-rating
S21(3)(o) of the GST Act
Certain services (e.g. repair and maintenance)
Certain services comprising the repair, maintenance, broking or management of any aircraft.
Qualifying criteria to zero-rate
The services are prescribed in the Sixth Schedule of GST (International Services) Order. Please refer to paragraph (p) in the extract of Section 21 of the GST Act (PDF, 203KB).
Relevant section for zero-rating
S21(3)(p) of the GST Act
Supply (including letting or hire) of qualifying aircraft parts
Qualifying criteria to zero-rate
Aircraft parts must be parts and equipment designed and built for exclusive use on an aircraft and are certified as airworthy by:
- A person certificated by a national civil aviation authority (in relation to an aircraft that is not a military aircraft); and
- The government owning that aircraft (in relation to a military aircraft).
Relevant section for zero-rating
S21(3)(x) of the GST Act
Supplies of stores, fuel and merchandise to aircraft
You may zero-rate supplies of stores, fuel and merchandise (for sale by retail to persons carried on the aircraft) to all aircraft (aircraft is defined above).
Supplies to non-international aircraft
For GST purposes, a 'non-international aircraft' refers to one which is:
- Not wholly used or intended to be wholly used for international travel; and
- Not a military aircraft.
Effective 1 Jul 2016, you may zero-rate the supply of the following prescribed goods and services specifically attributable to any international flight made by the non-international aircraft.
Handling of aircraft or goods carried in the non-international aircraft
Certain services in connection with:
- the handling of the non-international aircraft; or
- the handling or storage of goods carried in the non-international aircraft.
Qualifying criteria to zero-rate
The services are prescribed in the Tenth Schedule of GST (International Services) Order and must be provided within any Free Trade Zone or designated area of an airport.
The supply of services must be specifically attributable to any international flight undertaken by the non-international aircraft.
Relevant section for zero-rating
S21(6AA)(a) of the GST Act
Supplies of stores, fuel and merchandise to the non-international aircraft
The supplies of stores, fuel and merchandise (for sale by retail to persons carried on the non-international aircraft).
Qualifying criteria to zero-rate
The supply of goods must be specifically attributable for use on any international flight undertaken by the non-international aircraft.
Relevant section for zero-rating
S21(6AA)(b) of the GST Act
Approved Import GST Suspension Scheme (AISS)
The Scheme allows approved GST-registered businesses in the aerospace industry to enjoy import GST suspension in the following scenarios:
- Import his own goods in the course or furtherance of his business;
- Import goods belonging to his overseas principal for supply (either in Singapore or for export), as a section 33(2) agent. The overseas principal must not be GST-registered or if he is GST-registered, the registration is as a pay-only person under the Overseas Vendor Registration (OVR) regime;
- Import goods belonging to his overseas principal which will subsequently be re-exported, as a section 33A agent. The overseas principal must not be GST-registered or if he is GST-registered, the registration is as a pay-only person under the OVR regime;
- Import qualifying aircraft parts belonging to local or overseas persons;
- Remove localised or locally sourced qualifying aircraft parts from Airport Logistics Park of Singapore (ALPS) or other Free Trade Zones (FTZ);
- Remove qualifying aircraft parts from ALPS/FTZ as recipient for the purposes of making his taxable supplies.
For information on the conditions of eligibility, please refer to GST: Guide on Approved Import GST Suspension Scheme (PDF, 1216KB).
To apply for AISS, please submit GST F21: Application for Approved Import GST Suspension Scheme (XLS, 52KB) with the required documents to the Comptroller of GST.