Recovering Expenses
Consultancy and professional services provided locally are generally subject to GST. However, services that qualify as international services may be zero-rated. Please refer to Providing international services for the list of international services under section 21(3) of the GST Act.
On this page:
Zero-rating of consultancy and professional services
| Type of services | GST treatment |
Services of engineers, accountants, lawyers and other similar consultancy/professional services (E.g. Legal advisory services provided in Singapore to a representative of an overseas business on a proposed commercial arrangement) | Zero-rated under section 21(3)(k) of the GST Act if the services are contractually provided to an overseas person wholly in his business capacity and directly benefiting:
The services must not be directly in connection with land or goods in Singapore, other than goods for export. Zero-rating also will not apply to any part of the services relating to accommodation and entertainment. Note: The overseas person can be in Singapore when receiving your services. Please refer to belonging status of your customer on how to determine whether your customer is an overseas person. |
Services of estate agents, auctioneers, architects, surveyors, engineers in matters related to land (E.g. Architectural services provided by a Singapore architect in respect of a building located in China, Estate agent in Singapore selling a property in London) | Zero-rate under section 21(3)(e) of the GST Act if the services are directly in connection with land or buildings outside Singapore. The services must not include media sales under section 21(3)(u). |
Consultancy/professional services provided to overseas person that are not directly in connection with land or goods in Singapore (E.g. Management consultancy services rendered to an overseas person) | Zero-rate under section 21(3)(j) of the GST Act if the services are contractually provided to an overseas person and directly benefiting:
The services must not be directly in connection with land or goods in Singapore, other than goods for export. For services supplied before 1 January 2022, the services must not include media sales under section 21(3)(u). Note: The overseas person must not be in Singapore at the time the services are performed. Please refer to belonging status of your customer on how to determine whether your customer is an overseas person. |
Recovering expenses from clients
In the course of providing professional and consultancy services, you may pay for expenses on behalf of your client. When you subsequently recover the expenses from your client, the GST treatment depends on whether you have incurred the expenses as a principal or an agent.
If you incurred the expenses as a principal:
- Your recovery of expenses is a reimbursement. You must charge GST if the recovery constitutes a standard-rated supply.
- You can claim input tax on the expenses subject to the conditions for input tax claims.
If you incurred the expenses as an agent:
- Your recovery of expenses is a disbursement. You do not need to charge GST as the recovery does not constitute a supply.
- Your client can claim input tax on the expenses, subject to the conditions for input tax claims.
For more information on the GST treatment for the recovery of expenses, please refer to Recovering Expenses.