Approved Third Party Logistics (3PL) Company Scheme

Under this scheme, approved logistics companies that provide logistics management services to overseas clients do not need to pay import GST or charge GST on the supplies of their overseas clients’ goods under certain circumstances.

Purpose

The Approved Third Party Logistics (3PL) Company Scheme is designed to increase the competitiveness of logistics companies that provide logistics management services to overseas clients who use Singapore as a logistics hub.

Benefits of Approved 3PL Company Scheme


A logistics company usually imports and supplies goods that belong to its overseas clients (principals) in the capacity of a Section 33(2) agent.

Under the Approved 3PL Company Scheme, you:

  1. Do not need to pay GST when you import goods belonging to you or your overseas principals who are not GST-registered;
  2. Do not need to pay GST when you remove imported goods belonging to you or your overseas principals who are not GST-registered from Zero GST warehouse; and
  3. Do not need to charge GST when you remove and supply the imported goods locally to persons (including customers of your overseas principals) who are approved under the following GST schemes:
    1. Approved Major Exporter Scheme (MES) businesses;
    2. Approved Import GST Suspension Scheme (AISS);
    3. Approved Contract Manufacturer and Trader (ACMT) Scheme; or
    4. Approved Third Party Logistics Company Scheme.

Qualifying for the Scheme

For information on the eligibility requirements, please refer to GST: Approved Third Party Logistics (3PL) Company Scheme (e-Tax Guide, 547KB).

Applying for the Scheme

To apply, please submit:

  1. GST F15: Application for Approved Third Party Logistics (3PL) Company Scheme (45KB);
  2. A detailed write-up, including diagrammatic representations outlining the business arrangement made or to be made with your overseas principals and their customers (who must be approved under the MES, AISS, ACMT Scheme or Approved 3PL Company Scheme) on the movement of goods;
  3. A copy of the contractual agreement with your overseas principals and/or your overseas principals' local customers showing clearly the scope of services and responsibilities in the 3PL arrangement (if available);
  4. A copy of your latest audited financial statements; and
  5. Your Letter of Undertaking and computation of the 50% qualifying threshold (please refer to Appendix 4 and 5 of the e-Tax Guide).

Self-Review or ACAP


In addition, you must either:

  1. Perform a self-review using the Assisted Self-Help Kit (ASK) and submit the certified ASK declaration form. 

    Download the ASK: Declaration Form on Completing Annual Review & Voluntary Disclosure of Errors (55KB) (i.e. Section 3 of ASK).

    The ASK declaration form has to be certified by either your own in-house or external tax professional who is accredited as an Accredited Tax Practitioner (GST) or Accredited Tax Advisor (GST) with the Singapore Institute of Accredited Tax Professionals ("SIATP").

    For more information on accreditation, please visit www.siatp.org.sg.
  2. Commit/Have committed to participate in the Assisted Compliance Assurance Programme (ACAP)

    For successful ACAP applicants, you do not need to submit the ASK declaration form pending the result of ACAP review and submission of ACAP Report.

Reporting in GST Return

  1. Importing goods


    When you import goods your own goods and goods belonging to your overseas principals (who are not GST-registered) using your Approved 3PL Company Scheme status, you should declare the value of imports in:

    1. Box 5 (Total value of taxable purchases); and
    2. Box 9 (Total value of goods imported under MES/ Approved 3PL Company Scheme or Other Approved Schemes).

    They must be supported by valid ME permits and relevant supporting documents (e.g. commercial invoices and appropriate shipping documents).

    As GST on imports has been suspended (i.e. not paid), you should not claim any input tax.

  2. Zero GST (ZG) Warehouses


    When you import your own goods and goods belonging to your overseas principals (who are not GST-registered) into a Zero GST (ZG) Warehouse , you must declare the imports in your GST return despite the suspension of GST.

    You should declare the value of imports in Box 5 (Total value of taxable purchases) even though GST is suspended.

    When the imported goods are later removed from ZG Warehouse into customs territory using your Approved 3PL Company Scheme status, you should declare the value of goods removed in:

    1. Box 5 (Total value of taxable purchases); and
    2. Box 9 (Total value of goods imported under MES/ Approved 3PL Company Scheme or Other Approved Schemes).

    They must be supported by valid ME / MC / Customs permits and relevant supporting documents (e.g. commercial invoices and appropriate shipping documents).

    As GST on imports has been suspended (i.e. not paid), you should not claim any input tax.

  3. Supplying the imported goods locally to persons who are approved under MES/ AISS/ ACMT Scheme/ Approved 3PL Company Scheme


    You do not need to charge GST on such supplies.

    You are still required to include such supplies in Box 1 (Total value of standard-rated supplies) of your GST return.

    As payment of GST is not required on these supplies, you do not declare any output tax in Box 6 (Output tax due).

    Your tax invoices issued for such supplies need not reflect the GST amount and must include the description “Payment of GST is not required under the Approved Third Party Logistics Company Scheme”.

    The recipients of your goods (i.e. persons who are approved under MES/ AISS/ ACMT Scheme/ Approved 3PL Company Scheme) should declare their purchases of the imported goods from you in their GST returns in:

    1. Box 5 (Total value of taxable purchases); and
    2. Box 9 (Total value of goods imported under MES/ Approved 3PL Company Scheme or Other Approved Schemes).

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