Out-of-scope supplies

Out-of-scope supplies include sale of goods not brought into Singapore, sales of overseas goods within Free Trade Zones and Zero GST Warehouses, and private transactions. You do not charge GST on such supplies and do not report them in your GST return.

Types of out-of-scope supplies

Sale of goods not brought into Singapore

When you sell goods that are delivered directly from a place outside Singapore to another place outside Singapore, such supplies are out of scope.

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 warehouse in Japan. This sale of chocolates is an out-of-scope supply. Company A does not need to account for GST for this transaction.

Sale of overseas goods within Free Trade Zones (FTZ)

Free Trade Zones (FTZ) are designated areas in Singapore where the payment of duties and taxes (e.g. GST) is suspended for goods that arrive in Singapore and are stored in the FTZ.

When you sell overseas goods stored in an FTZ to another party who receives them within the same FTZ, such supplies are out of scope.

Example: Company A imports goods from overseas and stores them in an FTZ. Company A then sells the goods to Company B, which receives them within the FTZ. This sale of goods is an out-of-scope supply. Company A does not need to account for GST for this transaction.

Note: When goods are subsequently removed from the FTZ, GST may be chargeable. Please refer to the GST Guide for Free Trade Zones (FTZs), Warehouses and Excise Factories (PDF, 178KB) for details.

Sale of overseas goods within Zero GST (ZG) Warehouses

A Zero GST (ZG) Warehouse is a designated area approved by Singapore Customs for the storage of overseas goods. If you operate a ZG Warehouse under the Zero GST (ZG) Warehouse Scheme, you can import non-dutiable overseas goods into the ZG Warehouse with GST suspended.

When you sell overseas goods stored in a ZG Warehouse to another party who receives them within the same warehouse, such supplies are out of scope.

Example: Company A imports goods into a ZG Warehouse. Company A then sells the goods to Company B, which receives them within the same warehouse. This sale of goods is an out-of-scope supply. Company A does not need to account for GST for this transaction.

Note: When goods are subsequently removed from the ZG Warehouse, there may be GST implications. Please refer to the GST Guide for Free Trade Zones (FTZs), Warehouses and Excise Factories (PDF, 178KB) for details.

Private transactions

Non-business activities carried out without payment or any expectation of return from the recipients are treated as out-of-scope supplies.

Example: Helping your neighbour clear weeds from their garden over the weekend.

Supporting documents to keep

You should maintain supporting documents for your out-of-scope supplies for at least 5 years, in accordance with the record-keeping guidelines. Keep the following supporting documents, where applicable, for the respective types of out-of-scope supplies:

Sale of goods not brought into Singapore

• Purchase order showing delivery terms and shipping location
• Written instructions to supplier and from customer
• Transport documents proving delivery between countries outside Singapore (e.g. bill of lading, air waybill, export permit, cargo manifest, courier consignment note)
• Other transport documents to show the collection of goods (e.g. third-party delivery notes endorsed by the person collecting / receiving the goods)
• Invoice to customer
• Evidence of payment received

Sales within Free Trade Zones and ZG Warehouses

• Purchase order showing delivery terms and location
• Delivery order endorsed by the person collecting / receiving the goods in FTZ or ZG Warehouse. The delivery order should state precisely the place of delivery of the goods and must be endorsed by the buyer and the person receiving the goods in the FTZ or ZG Warehouse.
• Warehouse receipt note from FTZ or ZG Warehouse operator (if applicable)
• Singapore Customs permits for moving goods into FTZ or ZG Warehouse
• Invoice to customer
• Evidence of payment received