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.

The table below summarises the GST treatment for advertising and related services commonly supplied by media owners, media agencies and other suppliers in the advertising industry.

Types of advertising servicesGST Treatment

Media Sales

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

With effect from 1 Jan 2022 

The GST treatment depends on the belonging status of the contracting party and the party directly benefitting from the service (“direct beneficiary”)

Contract with a local customer
Standard-rate

Contract with an overseas customer
Zero-rated under Section 21(3)(j) of the GST Act if the service directly benefits an overseas person and/or GST-registered person in Singapore. 

Otherwise, the service has to be standard-rated.

The Comptroller considers your contractual client as the sole direct beneficiary of the services if the two conditions are met:

  1. The service agreement does not specify or require the services to be provided to anyone else; and 
  2. You only liaise with your client and are responsible to them for the service deliverables.

Prior to 1 Jan 2022

The GST treatment depends on the place of circulation of the advertisement

Local circulation
Standard-rate

Overseas circulation
Zero-rate under section 21(3)(u) of the GST Act

Mixed circulation
If at least 51% of the total circulation of the same advertisement is overseas, the service may be zero-rated.

Media planning

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

The GST treatment depends on the belonging status of the contracting party and direct beneficiary 

Contract with a local customer

Standard-rate

Contract with an overseas customer

Zero-rate under section 21(3)(j) of the GST Act if the service directly benefits an overseas person and/or a GST-registered person in Singapore. 

Otherwise, the service has to be standard-rated.

Creative & production sales

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

Brand public relations

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

Event organising

E.g. Organising exhibitions or conventions for promotional campaigns

The GST treatment depends on where the exhibition or convention is held

Held overseas
Zero-rate under section 21(3)(i) if the event is held wholly outside Singapore

Held in Singapore
Zero-rate under section 21(3)(k) of the GST Act if the service is contractually provided to an overseas person in his business capacity; and directly benefits an overseas person and/or a GST-registered person in Singapore.

Otherwise, the service has to be standard-rated.

For more information, please refer to GST: Guide for Advertising Industry (PDF, 796KB) and GST: Exhibition, Convention and Ancillary Services (PDF, 207KB)

FAQs

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

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 must be standard-rated.


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 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.