Travel

You need to charge GST to your customer for the services. For services which qualify as international services under Section 21(3) of the GST Act, you may zero-rate your supply of service (i.e. charge GST at 0%).

GST Treatment of Common Travel Services

TransactionGST Treatment

Supply and arrangement of international transport of passengers:

  • To and from Singapore; or
  • From a place outside Singapore to another place outside Singapore.

E.g. Sale of air ticket, ferry ticket, coach transport to overseas.

Zero-rate

Arrangement of hotel accommodation located in Singapore

Standard-rate

Arrangement of hotel accommodation located overseas

Zero-rate

Supply of outbound tour package

Zero-rate

Supply of inbound tour package

Standard-rate

Sale of Cruise Package

You may zero-rate the sale of cruise package that includes docking or stopover at port(s) outside Singapore.

Prior to 1 Jul 2010

You have to standard-rate the supply of cruise package where the cruise does not dock at any port outside Singapore (e.g. "cruise-to-nowhere" packages).

Effective 1 Jul 2010

Zero-rating relief is expanded to include transportation of passengers on a vessel so long as the vessel sails to or from international waters.

Consequently, the vessel no longer needs to dock at a port outside Singapore to qualify for zero-rating. The supply of "cruise-to-nowhere" packages can be zero-rated.

Service Fee for Visa Application

The processing fee charged by the embassy is for a supply of service by the embassy. This supply is subject to GST if the embassy is GST registered.

When the service fee is charged by the travel agency, the supply of service is provided by the travel agency. The service fee is subject to GST if the travel agency is GST registered.

For more information, please refer to GST: Travel Industry (150KB).

  • I provide a regional tour package (covering Singapore, Malaysia and Thailand) to overseas customers. Do I need to charge GST on the tour package?

    GST is chargeable on the portion of the tour package that is consumed in Singapore. The portion of travel package which relates to tour at other countries may be zero-rated.

    For example, the price of your regional tour package is $1,000. It includes $300 for the tour in Singapore and $700 for the tour in Malaysia and Bangkok. In this case, GST is chargeable on $300 only.

  • Are cancellation fees for tour packages subject to GST?

    Yes. Cancellation fees for tour packages are subject to GST. This applies to cancellation of bookings of both inbound and outbound tours.
  • I collected a non-refundable deposit for a booking of tour package. The deposit will be used as part payment for the tour package. Is GST chargeable when a deposit is received?

    For inbound tour package, the deposit received is subject to GST. For outbound tour package, the deposit received may be zero-rated (i.e. charge GST at 0%).

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