No. S 626
Goods and Services Tax Act
(Chapter 117A)
Goods and Services Tax (General) (Amendment No. 3) Regulations 2009
In exercise of the powers conferred by sections 27, 35A, 37 and 86(1) of the Goods and Services Tax Act, the Minister for Finance hereby makes the following Regulations:
Citation and commencement
1.  These Regulations may be cited as the Goods and Services Tax (General) (Amendment No. 3) Regulations 2009 and shall come into operation on 1st January 2010.
Amendment of regulation 45A
2.  Regulation 45A of the Goods and Services Tax (General) Regulations (Rg 1) (referred to in these Regulations as the principal Regulations) is amended —
(a)by deleting the words “such other taxable person as may be approved under this regulation or regulation 45 (referred to in this regulation as a specified person)” in paragraph (1)(a)(ii) and substituting the words “a specified person”; and
(b)by inserting, immediately after paragraph (13), the following paragraph:
“(14)  In this regulation, “specified person” means —
(a)a taxable person approved under this regulation or regulation 45;
(b)a taxable person approved under regulation 45C; or
(c)an approved contract manufacturer as defined in regulation 46.”.
New regulation 45C
3.  The principal Regulations are amended by inserting, immediately after regulation 45B, the following regulation:
“Approved import tax suspension scheme
45C.—(1)  A taxable person may apply to the Comptroller to be an approved person under this regulation, and the Comptroller may approve such application if the taxable person satisfies the Comptroller that —
(a)he is in the aerospace 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; and
(d)he is able to comply with such other conditions as the Comptroller may impose for the protection of revenue.
(2)  Subject to paragraph (4) —
(a)imported goods (other than qualifying aircraft parts) that are not subject to a duty (whether customs duty or excise duty or both) may be delivered or removed without payment of the tax chargeable on the importation if the goods are imported by an approved person in the course or furtherance of any business carried on by him;
(b)imported qualifying aircraft parts that are not subject to a duty (whether customs duty or excise duty or both) may be delivered or removed without payment of the tax chargeable on the importation if —
(i)the goods are imported by an approved person in the course or furtherance of any business carried on by him; or
(ii)the goods are consigned to an approved person as recipient for the purposes of making his taxable supplies in the course or furtherance of any business carried on by him; and
(c)imported goods that are not subject to a duty (whether customs duty or excise duty or both) but on which tax would, apart from section 37 of the Act, be chargeable may be removed from a warehousing regime without payment of the tax chargeable on a supply of those goods whilst the goods are subject to a warehousing regime, if the supply —
(i)is not disregarded for purposes of section 37(1) of the Act; and
(ii)is for the purpose of a business carried on by an approved person.
(3)  For the purposes of paragraph (2)(b), the importation of qualifying aircraft parts includes any movement of such parts from a free trade zone into the customs territory, whether the parts entered the free trade zone from outside Singapore or from the customs territory.
(4)  Paragraph (2) shall not apply if, at the time of the importation or supply in question, the approved person does not satisfy the requirement set out in paragraph (1)(a).
(5)  Every application made under paragraph (1) shall —
(a)be made in such form as the Comptroller may determine; and
(b)give a full and true account of the particulars or information furnished.
(6)  The Comptroller may approve an application made under paragraph (1) on such conditions or with such requirements as he may, in his discretion, impose.
(7)  The Comptroller may, in granting approval under paragraph (1), require the approved person to —
(a)furnish security in such form and amount; and
(b)make arrangements for the payment of tax,
as the Comptroller may determine.
(8)  An approval granted under paragraph (1) shall have effect for such period as the Comptroller may determine.
(9)  Unless the Comptroller otherwise allows or directs, notwithstanding that no tax is payable, an approved person shall account for the importation of goods in his return made under the Act for the period in which the importation occurred.
(10)  An approved person shall immediately notify the Comptroller of any change in particulars furnished, the security given or the arrangements for the payment of tax.
(11)  The Comptroller may, at any time, by notice in writing, vary or revoke any approval granted under this regulation if he is satisfied that the approved person —
(a)has at any time ceased to satisfy any of the requirements for eligibility under paragraph (1);
(b)has provided any false, misleading or inaccurate declaration or information in his application under paragraph (1);
(c)has failed to account for or pay tax on any importation or supply by him on the basis that the importation or supply fell within paragraph (2) when the importation or supply did not fall within that paragraph; or
(d)has failed to comply with any condition or requirement imposed by the Comptroller under paragraph (6).
(12)  Unless the Comptroller otherwise allows, where the approved person fails to account for or pay tax on any importation or supply by him on the basis that the importation or supply falls within paragraph (2) when —
(a)the importation or supply does not fall within paragraph (2); or
(b)paragraph (2) does not, by virtue of paragraph (4), apply to the importation or supply,
he shall —
(i)pay to the Comptroller without demand an amount equal to the tax which would, but for this regulation, have been chargeable on the importation or supply, as the case may be, to which the failure to comply relates; and
(ii)include the amount of tax as output tax in his return.
(13)  In this regulation —
“approved person” means a taxable person whose application to be an approved person has been granted by the Comptroller under paragraph (1);
“customs territory” and “free trade zone” have the same meanings as in section 3 of the Customs Act (Cap. 70);
“qualifying aircraft parts” has the same meaning as in section 21(4)(a) of the Act.”.
Deletion and substitution of regulation 46
4.  Regulation 46 of the principal Regulations is deleted and the following regulation substituted therefor:
“Approved contract manufacturer and trader scheme
46.—(1)  A taxable person may apply to the Comptroller to be an approved contract manufacturer, and the Comptroller may approve such application if the taxable person satisfies the Comptroller that —
(a)he is in an industry approved by the Comptroller to provide treatment or processing of goods for and to an overseas person;
(b)the total value of the supplies made by him comprising the treatment or processing of those goods for and to an overseas person —
(i)is not less than such amount as the Comptroller may determine; or
(ii)is not less than such proportion of the annual turnover of the taxable person as the Comptroller may determine;
(c)the total amount or proportion of specified goods which are —
(i)exported by him; or
(ii)delivered by him to an approved person,
is not less than such amount or proportion as the Comptroller may determine;
(d)his accounting and internal control systems meet such accounting standards as the Comptroller may require; and
(e)he is able to comply with such other conditions as the Comptroller may impose for the protection of revenue.
(2)  Subject to paragraph (3), where a taxable person is an approved contract manufacturer —
(a)imported goods that are not subject to a duty (whether customs duty or excise duty or both) may be delivered or removed without payment of the tax chargeable on the importation if the goods —
(i)are consigned to the taxable person as recipient for the purposes of carrying out treatment or processing for and to an overseas person and, after the treatment or processing, are —
(A)exported by him; or
(B)delivered by him to an approved person or to a customer of the overseas person; or
(ii)are imported by the taxable person in the course or furtherance of any other business carried on by him;
(b)imported goods that are not subject to a duty (whether customs duty or excise duty or both) but on which tax would, apart from section 37 of the Act, be chargeable, may be removed from a warehousing regime without payment of the tax chargeable on a supply of those goods whilst the goods are subject to a warehousing regime, if the supply —
(i)is not disregarded for the purposes of section 37(1) of the Act; and
(ii)is for the purpose of a business carried on by the taxable person; and
(c)the supplies that the taxable person makes, which comprise the treatment or processing of goods for and to an overseas person, shall be disregarded for the purposes of the Act if the taxable person, after treating or processing the goods, delivers them to an approved person or to a customer of the overseas person.
(3)  Paragraph (2) shall not apply if, at the time of the importation or supply in question, the taxable person does not satisfy the requirement set out in paragraph (1)(a).
(4)  A taxable person may apply to the Comptroller to be an approved logistics company, and the Comptroller may approve such application if the taxable person satisfies the Comptroller that —
(a)he is appointed as an agent of an overseas person for the purpose of distributing specified goods;
(b)he receives specified goods from an approved contract manufacturer which he subsequently delivers on behalf of the overseas person to another approved contract manufacturer or a customer of the overseas person;
(c)the total amount or proportion of the specified goods received by him and which is exported by him is not less than such amount or proportion as the Comptroller may determine;
(d)his accounting and internal control systems meet such accounting standards as the Comptroller may require; and
(e)he is able to comply with such other conditions as the Comptroller may impose for the protection of revenue.
(5)  Every application made under paragraph (1) or (4) shall —
(a)be made in such form as the Comptroller may determine; and
(b)give a full and true account of the particulars or information furnished.
(6)  The Comptroller may approve an application made under paragraph (1) or (4) on such conditions or with such requirements as he may, in his discretion, impose.
(7)  The Comptroller may, in granting approval under paragraph (1) or (4), require the taxable person to —
(a)furnish security in such form and amount; and
(b)make arrangements for the payment of tax,
as the Comptroller may determine.
(8)  An approval granted under paragraph (1) or (4) shall have effect for such period as the Comptroller may determine.
(9)  An approved person shall immediately notify the Comptroller of any change in particulars furnished, business transactions, the security given, or the arrangements for the payment of tax.
(10)  Unless the Comptroller otherwise allows or directs, notwithstanding that no tax is payable, an approved contract manufacturer shall account for the importation of goods in his return made under the Act for the period in which the importation occurred.
(11)  Where an approved contract manufacturer receives specified goods from an approved person, the approved contract manufacturer shall account for and pay the tax as if he himself had supplied the goods in the course or furtherance of his business.
(12)  Where an approved logistics company receives specified goods from an approved contract manufacturer, the approved logistics company shall account for and pay the tax as if he himself had supplied the goods in the course or furtherance of his business.
(13)  For the purposes of paragraphs (11) and (12) —
(a)the supply of the specified goods shall be regarded as taking place whenever the approved contract manufacturer or approved logistics company, as the case may be, receives the goods; and
(b)the value of the goods shall be taken to be —
(i)where known, the market value of the goods; or
(ii)where the market value of the goods is not known, a value determined by the Comptroller.
(14)  Unless the Comptroller otherwise allows, where specified goods have been treated or processed by an approved contract manufacturer for and to an overseas person, and —
(a)the approved contract manufacturer delivers the goods on behalf of the overseas person to a customer of the overseas person; or
(b)an approved logistics company (having received the goods from the approved contract manufacturer) delivers the goods on behalf of the overseas person to a customer of the overseas person,
then the customer shall, if he is a taxable person, account for and pay the tax on the supply of the goods from the overseas person to him as if he himself had supplied the goods in the course or furtherance of his business.
(15)  Paragraph (14) shall not apply if the Comptroller has directed, under section 33(1) of the Act, that the approved contract manufacturer or approved logistics company, as the case may be, who delivered the specified goods to the customer of the overseas person be substituted for the overseas person.
(16)  For the purpose of paragraph (14), the time of the supply of the specified goods shall be determined in accordance with sections 11 and 12 of the Act.
(17)  For the purposes of this regulation, the enforcement of any obligation to account for and pay tax shall apply to any taxable person who is required under this regulation to account for and pay any tax as if that were a tax on a supply made by him.
(18)  The Comptroller may, at any time, by notice in writing, vary or revoke the approval of an approved person granted under this regulation if he is satisfied that —
(a)the approved person has ceased to satisfy any of the requirements under paragraph (1) or (4), as the case may be;
(b)the approved person has provided any false, misleading or inaccurate declaration or information in his application under paragraph (1) or (4), as the case may be;
(c)the approved person has failed to account for or pay tax on any importation or supply by him on the basis that the importation or supply fell within paragraph (2), when the importation or supply did not fall within that paragraph;
(d)the approved person has failed to comply with paragraph (11) or (12), or a direction referred to in paragraph (15), as the case may be; or
(e)has failed to comply with any condition or requirement imposed by the Comptroller under paragraph (6).
(19)  Where —
(a)an approved contract manufacturer fails to account for or pay tax on any importation or supply by him on the basis that the importation or supply falls within paragraph (2), when —
(i)the importation or supply does not fall within paragraph (2); or
(ii)paragraph (2) does not, by virtue of paragraph (3), apply to the importation or supply; or
(b)an approved person fails to account for or pay tax on the supply of specified goods to the customer of an overseas person pursuant to a direction referred to in paragraph (15),
then —
(A)the approved contract manufacturer or approved person in the circumstances referred to in sub-paragraph (a)(i) or (b) (as the case may be); and
(B)unless the Comptroller otherwise allows, the approved contract manufacturer in the circumstances referred to in sub-paragraph (a)(ii),
shall —
(I)repay the Comptroller without demand the amount of tax chargeable on the importation or the supply, as the case may be, to which the failure relates; and
(II)include the amount of tax referred to in sub-paragraph (a) or sub-paragraph (b) or sub-paragraphs (a) and (b), as the case may be, as output tax in his return.
(20)  In this regulation —
“approved contract manufacturer” means —
(a)a taxable person whose application to be an approved contract manufacturer has been granted by the Comptroller under paragraph (1); and
(b)any taxable person approved under regulation 46 in force immediately before 1st January 2010;
“approved logistics company” means a taxable person whose application to be an approved logistics company has been granted by the Comptroller under paragraph (4);
“approved person” means an approved contract manufacturer or an approved logistics company, as the case may be;
“customer”, in relation to an overseas person, means a person to whom the overseas person supplies specified goods;
“overseas person” means a person who belongs in a country other than Singapore who is not registered under the Act;
“specified goods” means goods that have been treated or processed by an approved contract manufacturer.”.
New Part XIIIA
5.  The principal Regulations are amended by inserting, immediately after regulation 93, the following Part:
“PART XIIIA
VOUCHERS
Application of Part
93A.  This Part shall apply to any voucher referred to in section 35A of the Act that —
(a)is supplied on or after 1st January 2010; or
(b)was supplied before 1st January 2010 and can no longer be redeemed on or after 1st January 2010, but only —
(i)in relation to any unredeemed balance of the voucher; and
(ii)if tax was not previously accounted for on that balance.
Supply of vouchers by issuer
93B.—(1)  Subject to regulations 93E and 93F, where any voucher is supplied by an issuer for a consideration that is equal to or less than the value of the voucher, the consideration shall be disregarded for the purposes of the Act except to the extent that regulation 93D applies.
(2)  Subject to regulations 93E and 93F, where any voucher is supplied by an issuer for a consideration that is more than its value, where the issuer is a taxable person at the time of the supply of the voucher, tax shall be chargeable on the supply of the voucher by the issuer of the voucher as follows:
(a)in the first instance, at the time the voucher is supplied, on the amount by which the consideration for the supply exceeds the value; and
(b)thereafter, in accordance with regulation 93D (where it applies).
Redemption of voucher
93C.—(1)  Subject to regulation 93E, where a taxable person supplies goods or services upon the redemption of a voucher that is wholly redeemed on a single occasion, the value of the supply shall be —
(a)where the consideration received by the issuer for the voucher was less than the value of the voucher, either of the following at the option of the taxable person:
(i)the value of the voucher; or
(ii)the amount of the consideration; or
(b)where the consideration received by the issuer for the voucher was equal to or more than the value of the voucher, the value of the voucher,
plus any additional consideration the taxable person may have received (in addition to the voucher) for the supply.
(2)  Subject to regulation 93E, where a taxable person supplies goods or services upon the redemption of a voucher that is partially redeemed on more than one occasion, the value of the supply on each such occasion shall be —
(a)where the consideration received by the issuer for the voucher was less than the value of the voucher, either of the following at the option of the taxable person:
(i)the portion of the value of the voucher being redeemed on that occasion; or
(ii)the amount of that consideration that is proportional to the value of the voucher being redeemed on that occasion; or
(b)where the consideration received by the issuer for the voucher was equal to or more than the value of the voucher, the portion of the value of the voucher being redeemed on that occasion,
plus any additional consideration the taxable person may have received (in addition to the voucher) for the supply on that occasion.
(3)  This regulation shall not apply where a voucher is redeemed for another voucher.
Unredeemed balance of vouchers
93D.  Unless the Comptroller otherwise allows, for the purpose of regulation 93B(1) and (2)(b), where the whole or any part of the value of any voucher can no longer be redeemed, and where the issuer was a taxable person at the time of the supply of the voucher, tax shall be chargeable on the supply by the issuer of the voucher as follows:
(a)the time of the supply shall be when —
(i)the voucher can no longer be redeemed; and
(ii)the issuer accounts for the unredeemed value of the voucher in his statement of income; and
(b)the value of the supply shall be the unredeemed value of the voucher so accounted for in his statement of income.
Election for different treatment
93E.—(1)  Notwithstanding regulations 93B, 93C and 93D, where an issuer of a voucher is also the taxable person who supplies the goods or services upon the redemption of the voucher, he may, with the approval of the Comptroller, elect not to be subject to those regulations.
(2)  For the purpose of paragraph (1), the Comptroller may give his approval —
(a)generally in respect of any description of voucher; or
(b)specifically (upon an application being made to him) in respect of any description of voucher for which the Comptroller has not given his approval generally.
(3)  The approval of the Comptroller, whether given generally or specifically, shall be subject to such conditions as he thinks fit to impose.
(4)  Where an issuer has, with the approval of the Comptroller, elected not to be subject to regulations 93B, 93C and 93D —
(a)where the voucher is supplied for a consideration equal to or less than the value of the voucher, the consideration shall be disregarded for the purposes of the Act;
(b)where the voucher is supplied for a consideration more than its value, tax shall be chargeable on the supply of the voucher on the amount by which the consideration exceeds the value of the voucher; and
(c)tax shall be chargeable on the supply of the goods or services made upon the redemption of the voucher as follows:
(i)the time of the supply shall be the time of supply of the voucher; and
(ii)the value of the supply shall be —
(A)where the consideration for the voucher was equal to or less than the value of the voucher, the consideration for the voucher; and
(B)where the consideration for the voucher is more than the value of the voucher, the value of the voucher.
Supply of vouchers by intermediary
93F.—(1)  This regulation shall apply to a person (referred to in this regulation as an intermediary) who —
(a)buys a voucher issued by a supplier of goods and services from any person (including the supplier) and thereafter supplies the voucher —
(i)against consideration given to him other than in the form of another voucher issued by him; or
(ii)upon the redemption of another voucher issued by him; or
(b)supplies a voucher issued by him (referred to in this regulation as the first-mentioned voucher) upon the redemption of another voucher also issued by him (referred to in this regulation as the second-mentioned voucher), where —
(i)the first-mentioned voucher entitles the holder thereof to the same rights and benefits from a supplier of goods and services as those which the holder would be entitled to if the first-mentioned voucher were issued by that supplier; and
(ii)the intermediary has an arrangement with the supplier to pay the supplier an agreed amount for the goods or services supplied upon the redemption of the first-mentioned voucher.
(2)  Where vouchers are supplied by an intermediary in any prescribed accounting period in the circumstances referred to in paragraph (1)(a) or (b), tax shall be chargeable on the supply of the vouchers as follows:
(a)in respect of paragraph (1)(a), tax shall be chargeable at the rate specified in section 16 of the Act on the supplies made by the intermediary of the vouchers issued by the supplier as follows:
(i)the time of the supply shall be the end of the accounting period in which the supplies are made; and
(ii)the value of the supplies shall be an amount equal to the excess of A – B,
 
where
A
is the consideration from the supplies of the vouchers made by the intermediary in that accounting period; and
 
 
B
is the cost to the intermediary of all such vouchers; and
(b)in respect of paragraph (1)(b), tax shall be chargeable at the rate specified in section 16 of the Act on the supplies made by the intermediary of the first-mentioned vouchers as follows:
(i)the time of the supply shall be the end of the accounting period in which the first-mentioned vouchers are redeemed; and
(ii)the value of the supplies shall be an amount equal to the excess of A – B,
 
where
A
is the consideration from the supplies of the first-mentioned vouchers made by the intermediary in that accounting period; and
 
 
B
is the agreed amounts payable by the intermediary to the supplier for the goods and services supplied by the supplier upon the redemption of such first-mentioned vouchers.
(3)  For the purposes of paragraph (2), where there is no excess under paragraph (2)(a)(ii) or (b)(ii) in respect of an accounting period or in respect of a supply of a voucher, the tax shall not be charged in respect of that accounting period or supply, as the case may be.
(4)  In the circumstances referred to in paragraph (2)(b), where the whole of a first-mentioned voucher supplied by the intermediary can no longer be redeemed, tax shall be chargeable on the supply made by the intermediary of the first-mentioned voucher as follows:
(a)the time of the supply shall be when —
(i)the first-mentioned voucher can no longer be redeemed; and
(ii)the intermediary accounts for the unredeemed value of the first-mentioned voucher in his statement of income; and
(b)the value of the supply shall be the value of the first-mentioned voucher so accounted for in his statement of income.
(5)  An intermediary shall not be entitled to claim as input tax —
(a)in the circumstances referred to in paragraph (1)(a), the tax chargeable on any previous supply of any voucher to him which he subsequently supplies against the redemption of another voucher; and
(b)in the circumstances referred to in paragraph (1)(b), the tax chargeable on the supply of goods and services to which the payment referred to in sub-paragraph (ii) of that paragraph relates.”.
Amendment of regulation 108
6.  Regulation 108 of the principal Regulations is amended by deleting “46” and substituting the words “45C(5)(b) and (10), 46(5)(b), (9), (11), (12) and (14)”.
[G.N. Nos. S 674/2008; S32/2009; S 118/2009]
Made this 16th day of December 2009.
PETER ONG
Permanent Secretary,
Ministry of Finance,
Singapore.
[MOF(R) 60.1.0013 V34; AG/LEG/SL/117A/2002/2 Vol. 5]
(To be presented to Parliament under section 86(2) of the Goods and Services Tax Act).
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