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Auctioneer

An auctioneer is a person who helps owners (commonly known as consignors) to offer their goods for sale by way of auction.

Selling goods to satisfy a debt (mortgagee sale)

Where the auctioneer is appointed by the creditor (e.g. mortgagee) to sell goods in satisfaction of a debt owed by owner of the goods, the supply is treated as made by the owner of the goods.

Providing statement to IRAS within 21 days

If the owner is GST-registered, you are required to collect GST on the sale and provide a statement of sale and remit the GST due to IRAS within 21 days from the date of sale.

For more details on procedures, please refer to Selling/renting out asset in satisfaction of debt .

Zero-rating supplies

For goods that are exported, you may zero-rate the supply (i.e. charge GST at 0%) if the export is supported with required export documents stated in:

Selling goods not to satisfy a debt

Selling goods in your own name

Where the owner of the goods consigns the goods directly to you and you sell it in your own name without disclosing the identity of the owner, you will be treated as the principal when you sell the goods.

Therefore, the sale of goods is your taxable supply (and not that of the owner). You have to charge and account for GST on the sale of goods.

For goods that are exported, you may zero-rate the supply (i.e. charge GST at 0%) if you maintain the required export documents stated in:

If you operate the Tourist Refund Scheme, a tourist who makes a purchase from you and departs with the goods from Singapore via Changi International Airport or Seletar Airport, can be eligible for GST refund under the scheme.

Importing and selling goods on behalf of a non-GST registered overseas person

Where a non-GST registered overseas person consigns goods which you import and sell on his behalf, you are acting as the agent to the overseas person under section 33(2) of the GST Act.

For GST purpose, you will be treated as the principal when you sell the goods. Therefore, the sale of goods is your taxable supply. You have to charge and account for GST on the sale of goods.

For goods that are exported, you may zero-rate the supply (i.e. charge GST at 0%) if you maintain the required export documents stated in:

If you operate the Tourist Refund Scheme, a tourist who makes a purchase from you and departs with the goods from Singapore via Changi International Airport or Seletar Airport, can be eligible for GST refund under the scheme.

Selling goods in the name of the owner

Where you act as an agent and offer the owner's goods for sale in the name of the owner, the goods will be treated as sold by the owner. The GST treatment on the sale depends on whether the owner is GST-registered.

If the owner of the goods is GST-registered, GST is chargeable on goods sold in Singapore. The GST-registered owner has to issue a tax invoice to the buyer and account for GST in his GST return.

Services provided by auctioneer

You may provide auction service and other incidental services in connection with the auction goods (e.g. insurance, valuation, restoration, picture framing, catalogue illustrations services) to the owner/consignor and the buyer of the goods.

Services related to goods situated outside Singapore at time of auction

Where an auction is held in Singapore, but the goods are kept outside Singapore at the time the service is performed, the auction service provided qualifies as an international service under Section 21(3)(f) of the GST Act.

Therefore, you may zero-rate the supply of auction service (i.e. charge GST at 0%).

Services related to goods situated in Singapore at time of auction

  1. Services provided to the owner (consignor) of the goods

    You have to charge GST on these services.

    If these services are provided to an overseas owner and the auction goods are for export, you may zero-rate the supply of these services (i.e. charge GST at 0%) under Section 21(3)(g) of the GST Act. You need to maintain the required export documents.
  2. Services provided to the buyer of the goods
    1. If you sell the auction goods as the principal, the services that you provide to the buyer in connection with the goods are part of the supply of goods.

      For auction goods that are sold locally, the entire sum received (including hammer price, commission, recovery of costs on expenses etc.) is subject to GST.

      For auction goods that are exported, you may zero-rate (i.e. charge GST at 0%) for the entire sum received if you maintain the required export documents stated in:
    2. If you sell the auction goods as an agent, the services that you provide to the buyer in connection with the goods are not part of the supply of goods.

      You have to charge GST on these services.

      For services provided to an overseas buyer and where the auction goods are for export, you may zero-rate the supply of these services (i.e. charge GST at 0%) under section 21(3)(g) of the GST Act.

      You need to maintain the required export documents.

Goods temporarily removed from Zero-GST or Licensed Warehouse for auctions

Effective 1 Apr 2009, GST is suspended on goods temporarily removed from Zero-GST or Licensed Warehouse for auctions.

The GST on sales of goods at auction would be further suspended when the goods are returned to any Zero-GST or Licensed Warehouse after the auction.

For more information on the temporary removal of goods for auctions, please visit the Singapore Customs' webpage.

FAQs

If a non-residential property is sold during an auction in satisfaction of debt, is GST accountable upfront in full?

If the owner of the non-residential property is GST-registered, GST is chargeable on the sale. The auctioneer has to collect the GST on the full selling price and pay it to the Comptroller of GST with a statement of sale within 21 days of the sale.

I am appointed by the creditor (e.g. mortgagee) to sell goods in satisfaction of a debt owed by owner of the goods. What details should be shown on the statement of sale?

The statement should contain the following details:

  1. Your name, address and GST registration number (if applicable);
  2. The asset owner's name, address, and GST registration number;
  3. The date of the sale; and
  4. The description and amount payable before GST, the GST rate, the GST amount, and the total amount payable including tax.

You are encouraged to use the specimen statement GST Payment for Supply made in Satisfaction of Debt-Pursuant to Regulation 58 or 58A (DOC, 40 KB).

I am a GST-registered auctioneer. The owner of the goods consigns the goods directly to me which I sell in my own name without disclosing the identity of the owner. Can I claim the GST incurred in making the sale as input tax?

If you sell the goods as a principal and accounted for GST on the sale, you may claim the input tax incurred on the goods provided you can satisfy all the conditions for input tax claim .

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