Marine and Shipping

Definition of ship

A ship for the purposes of applying Sections 21(3)(l), (m), (n), (o) and (p) of the GST Act is defined as any ship (including an oil rig) but does not include any ship which is:

1. Licensed under the Maritime and Port Authority of Singapore (MPA) Act as a passenger harbour craft or pleasure craft;
2. Granted a vessel permit by the Public Utilities Board; and
3. Designed or adapted for use for recreation or pleasure and is used within Singapore.

For details, please refer to GST Guide for the Marine Industry (Third Edition) (PDF, 305KB).

Zero-rating of supplies relating to ships

You need to charge GST on services that you provide. Where the supplies qualify as international services under Section 21(3) of the GST Act, you may zero-rate your supply of service (i.e. charge GST at 0%).

International transport of passengers or goods by sea 

Transportation of passengers or goods by sea:

1. from a place outside Singapore to another place outside Singapore;
2. from a place in Singapore to international waters; or
3. from international waters to a place in Singapore.

Freight-related charges (e.g. bill of lading fee) and container-related charges (e.g. demurrage and detention fees) billed by shipping lines are considered as ancillary to international transportation.

Handling of ships or goods carried in a ship

Certain services in connection with:

1. the handling of ships; or
2. the handling or storage of goods carried in the ship.

Pilotage, salvage or towage services

Surveying or classification services

Services comprising the surveying or classification of any ship for the purposes of any register.

Supply (including letting or hire) of any ship

Certain services (e.g. repair and maintenance)

Certain services comprising the repair, maintenance, broking or management of any ship.

Services comprising the management of ship

Section 21(3)(p) of the GST Act provides that you may zero-rate the supply of services comprising the management of ship. The following are common types of ship management services and ship agency services that qualify for zero-rating.

Ship management services

• Provision of technical services (e.g. the arrangement and supervision of dry-docking and repair of vessels)
• Engagement and replacement of crew
• Arrangement of salvage and towage of vessels
• Arrangement and supervision of the operations of vessels
• Arrangement for the employment of vessels
• Construction supervision services (e.g. to ensure that the vessel is constructed according to specifications)

Ship agency services

• Ship husbandry services
• Liaisons with parties involved in the import/export of cargo, and other ancillary activities to ensure the smooth movement of cargo

Supplies of goods to ships

You may zero-rate a supply relating to goods (whether by sale or lease) where the Comptroller is satisfied that the goods are for:

1. Use as stores or fuel on a ship;
2. Installation on a ship or a ship under construction;
3. Use in the maintenance or operation of a ship; or
4. Sale by retail as merchandise to persons carried on a ship.

For the purposes of applying zero-rating, 'ship' refers to one which falls within the meaning of ship as explained above.

For more information on the supplies, please refer to GST Guide for the Marine Industry (Third Edition) (PDF, 305KB).

Approved Marine Customer Scheme

Under the new Approved Marine Customer Scheme (AMCS), suppliers can zero-rate supplies of goods to businesses approved under the scheme that are for:

1. Use as stores or fuel on;
2. Installation on; or
3. Use in the maintenance or operation of

a commercial ship that is wholly for international travel, without the supplier having to maintain the documentary proof listed in the GST Guide for the Marine Industry (Third Edition) (PDF, 305KB).

For details, please refer to GST: Approved Marine Customer Scheme (AMCS) (PDF, 982KB).

Repair and maintenance

Under Section 21(3)(p) of the GST Act, the supply of repair and maintenance services of ship and ship parts or components is zero-rated if:

1. Repair or maintenance is carried out on board the ship;
2. Any part or component of the ship is removed for repair and:
   1. Reinstalled on the ship, or returned onto the ship as spare; or
   2. Delivered to:
      1. A shipyard situated in Singapore; or
      2. An approved marine customer; or
3. Any part or component of the ship is removed and repaired by way of an exchange with an identical part or component, with the identical part or component being:
   1. Installed on the ship, or brought onto the ship as a spare; or
   2. Delivered to:
      1. A shipyard situated in Singapore; or
      2. An approved marine customer.

For details, please refer to GST Guide for the Marine Industry (Third Edition) (PDF, 305KB).

GST relief and documentary waiver for ships temporarily in Singapore

The circular for GST relief and documentary waiver for ships temporarily in Singapore can be found here. For details, please refer to Singapore Customs' website www.customs.gov.sg.

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