Your supply of advertising service attracts GST unless it qualifies for zero-rating as an international service under section 21(3) of the GST Act.
The GST treatment for advertising services is based on the nature of services.
| Advertising Services |
GST Treatment |
Relevant section for zero-rating |
Media Sales
E.g. sale of airtime, advertising space and web media space in various media modes
|
It depends on the place of circulation of the advertisement.
- Local circulation: standard-rate
- Overseas circulation: zero-rate
- Mixed circulation:
If at least 51% of the total circulation of the same advertisement is overseas, the service may be zero-rated.
|
S21(3)(u) of GST Act |
Media Planning
E.g. consultation and advisory services involving the choice of media, timing, frequency etc. to optimize client's media investment
|
It depends on the contracting and benefiting parties.
- Contract with local client: standard-rate
- Contract with overseas client: zero-rate*
* This is provided that the contract does not indicate a local recipient of the service and the service does not benefit a local party. Otherwise, the service has to be standard-rated.
|
S21(3)(j) of GST Act |
Creative & Production Sales
E.g. services that involves designing and producing the advertising artwork
|
Brand Public Relations
E.g. Public Relation consultation and management of reputation and relationships
|
Events Organising
E.g. organising exhibitions or conventions for promotional campaigns
|
Exhibition/convention held in Singapore
- Contract with local client wholly in its business capacity: standard-rate
- Contract with overseas client wholly in its business capacity (overseas business entity): zero-rate*
* This is provided that the service does not benefit a local party. Otherwise, the service has to be standard-rated.
Exhibition/convention held overseas
- Contract with local and overseas clients: zero-rate
|
S21(3)(i) and S21(3)(k)
of GST Act |
For more information, please refer to GST: Treatment of Advertising Services (295KB).
FAQs
This is a supply of web advertising space. It can be zero-rated if there is no access restriction to the website or webpage. If the access is allowed only to Singapore viewers/browsers, the media sale of web advertising space will be standard-rated.
You can zero-rate the entire supply of advertising space to your client if at least 51% of the total circulation is outside Singapore. If less than 51% of the circulation is outside Singapore, you have to standard-rate the entire value of supply of advertising space to your client.
The 51% rule of circulation applies only to magazine of the same language, version and edition for distribution to multiple countries. It is determined based on expected volume of the circulation in each country or average actual circulation if there is an established track record.