Out-Of-Scope Supplies refer to supplies which are outside the scope of the GST Act. No GST needs to be charged on out-of-scope supplies and they need not be reported in the GST return.
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Sales where goods are delivered from a place outside Singapore to another place outside Singapore (Third country sales)
Sales made within Free Trade Zone
Sales made within Zero GST warehouse
Private transactions
Sales where goods are delivered from a place outside Singapore to another place outside Singapore (Third country sales)
Third country sales are not subject to GST as they are outside the scope of the GST Act. Such supplies need not be reported in the GST return.
Example:
Local company A sells chocolates to local company B. The chocolates are shipped directly from Company A’s factory in China to Company B’s branch in Japan.
The supply of chocolate is an out-of-scope supply.
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Sales made within Free Trade Zone
Free Trade Zones (FTZ) are designated areas in Singapore where the payment of duties and taxes (e.g. GST) are suspended when goods arrive in Singapore and are stored in FTZ.
Overseas goods (i.e. goods from outside Singapore landing in FTZ and pending customs clearance) situated in FTZ are considered to be under customs control. The supply of such goods within FTZ is disregarded under the GST Act. Therefore, the supply is not subject to GST and need not be reported in the GST return.
Example:
Company A imported goods from overseas and deposited into FTZ. Subsequently, Company A sells the goods to Company B who takes receipt of the goods within the FTZ.
The sale of goods is an out-of-scope supply. Hence, the supply is not subject to GST.
For information on GST implications due to subsequent movements of goods in FTZ, please refer to GST Guide for Free Trade Zones (FTZs), Warehouses and Excise Factories (114KB).
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Sales made within Zero GST warehouse
Zero GST (ZG) Warehouse is a designated area approved by the Singapore Customs for storage of overseas goods. If you operate a ZG Warehouse under the ZG Warehouse Scheme, you can import non-dutiable overseas goods into the ZG Warehouse with GST suspended.
When overseas goods are supplied within ZG Warehouse, it is an out-of-scope supply. The supply is not subject to GST and need not be reported in the GST return.
Example:
Company A imported goods into a ZG Warehouse. Subsequently, Company A sells the goods to Company B who takes receipt of the goods within the ZG warehouse.
The sale of goods is an out-of-scope supply. Hence, the supply is not subject to GST.
For information on GST implications due to subsequent movements of goods in ZG Warehouse, please refer to GST Guide for Free Trade Zones (FTZs), Warehouses and Excise Factories (114KB).
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Private transactions
Private transactions are not subject to GST as they are outside the scope of the GST Act. Such supplies need not be reported in the GST return.
Private transactions are non-business activities performed without payment or any expectation of return from the recipients. For example, you help to clear your neighbour's garden of weeds over the weekend.
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