Currently, GST on imported goods (import GST) is payable to Singapore Customs (SC) at the point of importation, unless the GST-registered importer:
- has been granted a relief under the GST (Imports Relief) Order; or
- is under one of various import GST suspension schemes, for example the Major Exporter Scheme (MES).
Eligible GST-registered importers may apply for the Import GST Deferment Scheme (IGDS), which takes effect from 1 Oct 2010. It aims to ease the import GST cash flow arising from the time lapse between the payment of import GST and the claiming of import GST for GST-registered businesses.
Under IGDS, approved GST-registered businesses can defer their import GST payments until their monthly GST returns are due. This means that they account for the deferred import GST and claim it as input tax (subject to the conditions of claiming input tax) in the same GST return. Businesses under IGDS must file their GST returns on monthly basis. This allows importers to enjoy a credit period of one to two months, similar to what businesses enjoy for their local purchases (30-day credit term).
The following diagram illustrates how IGDS works:
Amongst other requirements, GST-registered businesses must have good compliance records with IRAS and SC in order to qualify for IGDS.
For an overview of how IGDS works, you can download a copy of our Import GST Deferment Scheme presentation slides (1.57MB).
How to apply
For details on the qualifying conditions, please download our e-Tax Guide on Import GST Deferment Scheme (820KB).
To enjoy the scheme, you need to submit the fully completed and signed Application Form GST F22: Application for Import Deferment Scheme (157KB) with the necessary supporting documents to the Comptroller of GST.
You have to perform a self-review using the Assisted Self-Help Kit (ASK). The ASK Annual Review must either be performed by :
i) an individual accredited with Singapore Institute of Accredited Tax Professionals^ ("SIATP") as Accredited Tax Advisor (GST) [ ATA (GST)] or Accredited Tax Practitioner (GST) [ ATP (GST)]; or
ii) the GST-registered business and certified by an individual accredited with SIATP as ATA (GST) or ATP (GST), in adherence to the certification procedures set out in the GST ASK Annual Review Guide (975KB)
^ The ATA (GST) or ATP (GST) may either be an in-house staff or external party. For more information on accreditation, please visit www.siatp.org.sg.
For successful ACAP applicants, you do not need to submit the ASK declaration form pending the result of ACAP review and submission of ACAP Report.
Please refer to our e-Tax Guide on Import GST Deferment Scheme (820KB) for more details.