You must charge GST on the supply of local telecommunication services. Where the supply qualifies as an international service, you may zero-rate the supply of service (i.e. charge GST at 0%).
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Zero-rating of supplies
In general, the supply of local telecommunication services is a standard-rated supply.
Prescribed telecommunication services
You can zero-rate your supply of telecommunication services, regardless of whether they are supplied to an overseas or a local person, if the services are:
- Prescribed in the Fifth Schedule of the GST (International Services) Order, and
- Comprise the provision of international telecommunications transmitted:
- Into and out of Singapore; or
- Outside Singapore.
Examples of such prescribed services include the provision of voice transmission services through phone lines/mobile phones, satellite services, messaging services such as SMS and MMS. Such services can only be zero-rated if they involve international transmission.
For more details, refer to GST Guide on Zero-rating Telecommunication and Related Services under Section 21(3)(q) (PDF, 435KB).
Relevant section for zero-rating
Section 21(3)(q) of the GST Act