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Advertising

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.
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Media Sales

E.g. Sale of airtime, advertising space and web media space in various media modes.

GST Treatment

Relevant section for zero-rating: Section 21(3)(u) of the GST Act

GST treatment 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.

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Media Planning

E.g. Consultation and advisory services involving the choice of media, timing, frequency, etc. to optimise client's media investment.

GST Treatment

Relevant provision for zero-rating: Section 21(3)(j) of the GST Act.

GST treatment depends on the contracting and benefiting parties:

Contract with local client:

Standard-rate

Contract with overseas client:

Prior to 1 Jan 2020

Zero-rate, 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.

  

With effect from 1 Jan 2020

Zero-rate, provided that the contract does not indicate a local non-GST registered recipient of the service and the service does not benefit a local party who is not registered for GST.

Otherwise, the service has to be standard-rated.

 

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Creative & Production Sales

E.g. Services that involve designing and producing the advertising artwork.

GST Treatment

Relevant section for zero-rating: Section 21(3)(j) of the GST Act.

GST treatment depends on the contracting and benefiting parties:

Contract with local client:

Standard-rate

Contract with overseas client:

Prior to 1 Jan 2020

Zero-rate, 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.

 

With effect from 1 Jan 2020

Zero-rate, provided that the contract does not indicate a local non-GST registered recipient of the service and the service does not benefit a local party who is not registered for GST.

Otherwise, the service has to be standard-rated.

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Brand Public Relations

E.g. Public Relations consultation and management of reputation and relationships.

GST Treatment

Relevant section for zero-rating: Section 21(3)(j) of the GST Act.

GST treatment depends on the contracting and benefiting parties:

Contract with local client:

Standard-rate

Contract with overseas client:Prior to 1 Jan 2020

Zero-rate, 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.

 

With effect from 1 Jan 2020

Zero-rate, provided that the contract does not indicate a local non-GST registered recipient of the service and the service does not benefit a local party who is not registered for GST.

Otherwise, the service has to be standard-rated.

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Events Organising

E.g. Organising exhibitions or conventions for promotional campaigns.

For exhibitions/conventions held in Singapore

Relevant section for zero-rating: Section 21(3)(k) of the GST Act.

Contract with local client wholly in its business capacity:

Standard-rate

Contract with overseas client wholly in its business capacity (overseas business entity):

Prior to 1 Jan 2020

Zero-rate, provided that the service does not benefit a local party.

Otherwise, the service has to be standard-rated.

 

With effect from 1 Jan 2020

Zero-rate, provided that the service does not benefit a local party who is not registered for GST.

Otherwise, the service has to be standard-rated.

For exhibitions/conventions held Overseas

Relevant section for zero-rating: Section 21(3)(i) of the GST Act.

Contract with local client:

Zero-rate

Contract with overseas client:

Zero-rate

For more information, please refer to GST: Guide for Advertising Industry (PDF, 419KB) and GST: Exhibition, Convention and Ancillary Services (PDF, 662KB)

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  • What is the GST treatment for advertising over the Internet?

    This is a supply of web advertising space.

    If there is no access restriction to the website or webpage, the supply can be zero-rated.

    If the access is allowed only to Singapore viewers/browsers, the media sale of web advertising space must be standard-rated.

  • I am the publisher of a magazine (hardcopy) which is circulated in Singapore and overseas. My client places an advertisement in an issue of the magazine. Do I need to charge GST on my provision of advertising space to my client?

    If at least 51% of the total circulation is outside Singapore, you can zero-rate the entire supply of advertising space to your client.

    If less than 51% of the circulation is outside Singapore, you must 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.