10. The principal Regulations are amended by inserting, immediately after regulation 106, the following regulations:“Zero-rating of supplies to approved marine customers |
106A.—(1) Subject to this regulation, a supply by any taxable person relating to goods to be used for a prescribed purpose to another taxable person who is an approved marine customer shall be zero-rated.(2) Any taxable person who wishes to be an approved marine customer for the purpose of paragraph (1) may make an application to the Comptroller for such approval if he is eligible to do so under paragraph (4). |
(3) Every application under paragraph (2) shall —(a) | be made in such form and manner as the Comptroller may determine; and | (b) | give a full and true account of the particulars or information furnished. |
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(4) A taxable person is eligible to make an application under paragraph (2) if he satisfies the Comptroller that —(a) | he is principally engaged in business activities approved by the Comptroller in the shipping or marine industry; | (b) | he makes substantial supplies in the course or furtherance of his business and satisfies such requirements as the Comptroller may determine; | (c) | his accounting and internal control systems are able to meet such accounting standards as the Comptroller may require; | (d) | he has faithfully observed and complied with all duties and obligations relating to his liability to pay customs and excise duties, income tax, property tax and goods and services tax; and | (e) | he is able to comply with such other conditions as the Comptroller may impose for the protection of revenue. |
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(5) The Comptroller may, on an application made under paragraph (2), approve the application on such conditions or requirements as he may, in his discretion, impose. |
(6) The Comptroller may, in granting approval under paragraph (5), require the applicant to furnish security in such form and amount and to make arrangements for the payment of taxes as the Comptroller may determine. |
(7) An approval granted under paragraph (5) shall have effect for such period as the Comptroller may determine. |
(8) An approved marine customer shall immediately notify the Comptroller of any change in particulars furnished, the security given, or the arrangements for the payment of taxes. |
(9) The Comptroller may, at any time, by notice in writing, vary or revoke any approval granted under this regulation if the Comptroller is satisfied that the approved marine customer —(a) | has provided any false, misleading or inaccurate declaration or information in his application under paragraph (3); | (b) | has at any time ceased to satisfy any of the requirements for eligibility under paragraph (4); or | (c) | has failed to comply with any condition or requirement imposed by the Comptroller under paragraph (5). |
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(10) A taxable person to whom approval has been granted under paragraph (5) shall not use the approval, and shall take all steps to ensure that no other person uses the approval, except for the purposes for which the approval was granted. |
(11) Where in any accounting period, the approved marine customer uses or forms an intention to use the goods referred to in paragraph (1) for a purpose other than the prescribed purpose, the approved marine customer shall, in the return for that accounting period, account for the tax which would, but for this regulation, have been chargeable on the supply to the approved marine customer, as output tax in his return. |
(12) Where in any accounting period, the approved marine customer ceases to be approved for the purposes of section 21B of the Act, he shall, immediately before his approval ceases account for the tax which would, but for this regulation, have been chargeable on the supply to him of the goods which have not been used for any prescribed purpose, as output tax in his return. |
(13) Unless the Comptroller otherwise allows, if any condition or restriction imposed under this regulation or by the Comptroller is not complied with, the approved marine customer shall —(a) | pay to the Comptroller without demand an amount equal to the tax which would, but for this regulation, have been chargeable on the supply to the approved marine customer; and | (b) | include the amount of tax as output tax in his return. |
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(14) In this regulation, goods are used for a prescribed purpose if they are or are to be used by the approved marine customer in the course of his business —(a) | as stores or fuel on a ship; | (b) | for installation on a ship; or | (c) | in the maintenance or operation of a ship. |
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(15) In this regulation —“approved marine customer” means a taxable person whose application to be an approved marine customer has been granted by the Comptroller under paragraph (5); |
“ship” means any ship (including an oil rig) but does not include any ship —(a) | that is licensed under the Maritime and Port Authority of Singapore Act (Cap. 170A) as a harbour craft or pleasure craft; | (b) | in respect of which a vessel permit has been granted by the Public Utilities Board under regulations made under the Public Utilities Act (Cap. 261); or | (c) | that is designed or adapted for use for recreation or pleasure. |
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Specialised Warehouses Scheme |
106B.—(1) Subject to this regulation, a taxable person may make an application to the Comptroller for approval for one or more of his warehouses or other premises to be an approved warehouse for the purposes of sections 21(3)(y) and 21C of the Act if the conditions set out under paragraph (3) are satisfied.(2) Every application under paragraph (1) shall —(a) | be made in such form and manner as the Comptroller may determine; and | (b) | give a full and true account of the particulars or information furnished. |
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(3) A taxable person is eligible to make an application under paragraph (2) if he satisfies the Comptroller that —(a) | the warehouse or other premises are licensed as a bonded warehouse under Part XIV of these Regulations; | (b) | he is the licensee of the bonded warehouse referred to in sub-paragraph (a); | (c) | the warehouse or other premises are wholly used by the taxable person for his business of storing goods prescribed under the Ninth Schedule of the Goods and Services Tax (International Services) Order (O 1) other than the goods of the taxable person; | (d) | the proportion of customers of the taxable person who belong in a country outside Singapore satisfies such requirement as the Comptroller may determine; | (e) | the proportion of goods prescribed under the Ninth Schedule of the Goods and Services Tax (International Services) Order removed or to be removed from the warehouse for export satisfies such requirement as the Comptroller may determine; | (f) | the taxable person has faithfully observed and complied with all duties and obligations relating to his liability to pay customs and excise duties, income tax, property tax and goods and services tax; and | (g) | the taxable person is able to comply with such other conditions as the Comptroller may impose for the protection of revenue. |
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(4) The Comptroller may, on an application made under paragraph (2), approve the application on such conditions or requirements as he may, in his discretion, impose. |
(5) An approval granted under paragraph (4) shall have effect for such period as the Comptroller may determine. |
(6) A taxable person shall immediately notify the Comptroller of any change in the particulars or information furnished under paragraph (2). |
(7) The Comptroller may, at any time, by notice in writing, vary or revoke any approval granted under this regulation if the Comptroller is satisfied that the approved warehouse or the taxable person, as the case may be —(a) | has provided any false, misleading or inaccurate declaration or information in his application under paragraph (2); | (b) | has at any time ceased to satisfy any of the requirements for eligibility under paragraph (3); or | (c) | has failed to comply with any condition or requirement imposed by the Comptroller under paragraph (4). |
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(8) Unless the Comptroller otherwise allows, where the taxable person referred to in paragraph (1) who made an application in respect of a warehouse or other premises fails to comply with any condition or requirement imposed by the Comptroller under paragraph (4) in respect of the approval of that warehouse or other premises, the taxable person shall —(a) | pay to the Comptroller without demand the amount of tax that would, but for section 21(3)(y) or 21C of the Act, be chargeable on any supply referred to therein (whether made by the taxable person or any other person) and taking place on or after the date of failure to comply with the condition or requirement up to and including the eve of the earliest of the following days:(i) | the day the approval of the warehouse or other premises is revoked under paragraph (7); | (ii) | the day the warehouse or other premises otherwise cease to be an approved warehouse; or | (iii) | the day the failure is rectified; and |
| (b) | include the amount of tax in respect of such supply under sub-paragraph (a) as output tax in his return.”. |
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