To help you understand the GST terms used in our website and e-Tax Guides, we have listed their definitions in alphabetical order:
Business establishment
A business establishment includes an office, a showroom, a factory or workshop, etc. Where a person conducts business in Singapore through a branch or agency, he will be treated as having a business establishment in Singapore.
Deemed supply
GST is chargeable on supplies of goods and services. For GST to be applicable, there must be goods or services provided and a consideration paid in return. However, there are situations where the GST Act provides that a supply has taken place even though no goods or services are provided or no consideration is paid. These are known as deemed supplies. See What are taxable goods & services (including deemed supplies) for more details.
Disbursement
Disbursements are expenses paid by you on behalf of another person that are not subject to GST when they are recovered from that person. To qualify as a disbursement, the expenses must satisfy certain conditions. See If recovering expenses from another company for more information.
Exempt supply
The provision of certain Financial Services and the Sale and Lease of Residential Properties are exempt supplies. GST is not chargeable on an exempt supply. Generally, any GST incurred in the making exempt supplies cannot be claimed as input tax credit.
Free Trade Zone
A free trade zone (FTZ) is an area in Singapore where goods are stored where GST on importation is suspended before they are re-exported overseas. GST will be payable when the goods are removed from FTZ and released into the local market. Sale of goods within the FTZ is an out-of-scope supply. However, if goods are consumed or used within the FTZ, GST will be applicable on the consumption or usage.
GST F5
GST F5 is the quarterly GST return which a GST registered person will complete and submit to IRAS to account for the output tax on his supplies and claim input tax on his taxable purchases. He will receive the GST F5 in the last month of each quarter. A GST-registered person may opt for a monthly accounting period where the GST F5 will be sent to him on a monthly basis. For more information, please see Complete your returns correctly.
GST F7
GST F7 is a return that a GST registered person can use to rectify errors that have been made in the GST F5 submitted previously. For more information, please see Correct Mistakes in Past Return.
GST F8GST F8 is the final GST return you will need to file once you have de-registered from GST.
Imports
Imports are goods removed from a place outside Singapore and brought into Singapore. GST is chargeable on the importation of goods into Singapore and is collected by Singapore Customs at the point of importation regardless of whether the person is GST-registered or not. However, GST will not be payable when a person is granted Relief under the GST (Imports Relief) Order or is an approved traders under the Major Exporter Scheme or Third Party Logistics (3PL) Company Scheme.
Input taxInput tax is the GST paid on your business purchases and on the importation of goods that you incurred for the purpose of your business. You can claim input tax credit from IRAS if you satisfy the conditions for claiming input tax.
Local agent
A local agent is a person who acts on behalf of an overseas principal and has a business establishment in Singapore.
Open market value (OMV)
OMV is the price (exclusive of GST) that your goods or services can fetch if you supplied it to an unrelated person. In determining the OMV of a property, you may wish to engage the services of an independent valuer.
Out-of-scope supply
An out-of-scope supply is a supply that falls outside the scope of the GST Act and GST is therefore not chargeable. Examples of out-of-scope supplies are transactions not made in the course or furtherance of any business i.e. done in an individual's private capacity and supplies that are not made in Singapore i.e. Third Country Sales.
Output tax
Output tax is the GST collected or absorbed by a GST registered person on the sale of goods or provision of services. It is the GST payable to IRAS.
Overseas principal
An overseas principal is a person who is not GST registered and who does not belong in Singapore.
Partially exempt
A GST-registered person is a partially exempt trader if he makes both taxable and exempt supplies. A partially exempt trader can only claim the portion of his input tax that is attributable to the making of taxable supplies. SeeIf you incur input tax for exempt supplies.
Prescribed accounting periods
The period covered by the GST F5 is called the prescribed accounting period. The standard prescribed accounting period is three months. The prescribed accounting periods can also be monthly, half-yearly or special accounting periods that are not based calendar months.
Standard-rated supplyA standard-rated supply is a local supply of good or service made in Singapore by a taxable person. GST is chargeable at the standard rate of 7%. See What are taxable goods & services (including deemed supplies).
Supply
A supply is defined to include all forms of supply done for a consideration. It includes the transfer, assignment or surrender of rights for a consideration. See What are taxable goods & services (including deemed supplies).
Supply of goods
Goods are possessions you have obtained in exchange for money or in kind - they could be new or second-hand, and could be bought from a shop, catalogue, at the market or from the Internet. For GST purposes, supplies of goods include:
- generally tangible objects;
- utilities;
- interest in or right over land; and
- license to occupy land.
Supply of services
For GST purposes, the supply of services is broadly defined as anything that is not a supply of goods. In simple terms, it is the performance of any duties or work in exchange for money or in kind. The supply of a service is usually intangible (i.e. cannot be touched or seen).
Taxable person
A taxable person is a person who is registered or required to register for GST. A taxable person includes an individual, partnership, company, club, association, society, management corporation or non-profitable organisation.
Taxable supply
Taxable supplies are supplies of goods and services made in Singapore other than exempt supplies. Standard-rated supplies and zero-rated supplies are taxable supplies.
Time of supply
The time of supply refers to the time when a supply is made. Time of supply determines when a taxable person should report his supplies and account for GST. See Understanding Time of Supply/14 days Rule.
Value of supply
Value of supply is the value of goods and services to account for output tax.
Zero GST Warehouse Scheme
A zero GST warehouse is a designated area approved by Singapore Customs for storing goods imported into Singapore without payment of GST. A zero GST warehouse can be the whole premise, a designated part of a premise, a storage tank or any other place demarcated with lines separating it from the other areas. It is conceptually an extension of the Free Trade Zone where GST on importation of goods is suspended until the goods are released into the local market.
Zero-rated supply
Export of goods and provision of international services are zero-rated supplies. GST is chargeable at the rate of 0% on the value of supply. See When to Zero-Rate GST for more information.