Prior to 1 Jan 2022, the GST treatment of your supply of
advertising space in your magazine will depend on the place of circulation of
the magazine, regardless of whether the
customer belongs in Singapore or overseas:
-If at least 51%
of the total circulation is outside Singapore, you can zero-rate the entire
supply of advertising space to your customer under section 21(3)(u) of the GST Act.
-If less than 51%
of the circulation is outside Singapore, you must standard-rate the entire
value of supply of advertising space to your customer.
-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.
New!With effect from 1 Jan 2022, the GST treatment for supplies of
media sales (including the supply of advertising space in your magazine) will
depend on the belonging status of the customer (i.e. contractual party) and the
direct beneficiary.
If you contract with an overseas customer
and your supply directly benefits either an overseas person or a GST-registered
person in Singapore, your supply of advertising space to the overseas customer
can be zero-rated.
Conversely, if you contract with a local
customer, the entire supply of advertising space will be standard-rated.
IRAS will publish more
details on the change in GST treatment for media sales by July 2021.