EIGHTH SCHEDULESection 14(3), (6) and (10)
DISTANTLY TAXABLE GOODS AND SERVICESEXCLUDED FOR PURPOSES OF SECTION 14 sDistantly taxable goods
1.The following distantly taxable goods are excluded for the purpose of section 14(1)(a)(i) and (ii):
(a) any distantly taxable goods used or to be used exclusively in the making of taxable supplies under regulations made under section 20, unless the taxable person claiming input tax in respect of the firstmentioned supply is able to apply a fixed input tax recovery rate or formula for all input tax claimed by the taxable person.
Services
1.The following services are excluded for the purpose of section 14(1)(b)(i) and (ii):
(a) any services the supply of which would, if the supply of the services were made by a taxable person in Singapore, be an exempt supply under section 22 and the Fourth Schedule;
(b) any services the supply of which would, if the supply of the services were made by a taxable person in Singapore, be a supply of international services which is zero‑rated under section 21(1);
(c) any services used or to be used exclusively in the making of taxable supplies under regulations made under section 20, unless the taxable person claiming input tax in respect of the firstmentioned supply is able to apply a fixed input tax recovery rate or formula for all input tax claimed by the taxable person;
(d) any services the supply of which is provided by a government of a country other than Singapore, where the supply of those services would if made by a public agency mentioned in section 28, be a supply prescribed under section 28(2A).
NINTH SCHEDULESection 20(2C)
ILLUSTRATIONS OF ARRANGEMENTSFOR PURPOSES OF SECTION 20(2A)
Illustration 1 — Missing trader in supply chain
Persons A, B and C are registered under this Act. Person A supplies goods to Person B at a price that includes tax chargeable on the supply. Person B supplies the same goods to Person C at a higher price (to earn a profit margin for Person B) that includes tax chargeable on the supply. Person C exports the goods to an overseas Person D at a price that does not include tax chargeable on the supply to Person D (on the basis that an export of goods would be a zero‑rated supply).
Person C claims a refund for the input tax paid to Person B and Person B accounts for the output tax on Person B’s supply to Person C (less the input tax paid to Person A). Person A fails to account for the output tax on Person A’s supply to Person B and becomes untraceable.
The arrangement causes loss of public revenue as a refund is made to Person C while Person A does not account for the output tax due from Person A.
This illustration applies equally to a supply of services, and if there are 2 or more intermediaries in the supply chain between Person A and Person C.
Illustration 2 — Obstruction and obfuscation by intermediary
Persons A, B and C are registered under this Act. Person A supplies goods to Person B at a price that includes tax chargeable on the supply. Person B supplies the same goods to Person C at a higher price (to earn a profit margin for Person B) that includes tax chargeable on the supply. Person C exports the goods to an overseas Person D at a price that does not include tax chargeable on the supply to Person D (on the basis that an export of goods would be a zero‑rated supply).
Person C claims a refund for the input tax paid to Person B and Person B accounts for the output tax on Person B’s supply to Person C (less the input tax paid to Person A). Person A fails to account for the output tax on Person A’s supply to Person B, and Person B obfuscates the identity of Person A (for instance, by Person B becoming untraceable or keeping poor records).
The arrangement causes loss of public revenue as a refund is made to Person C while Person A does not account for the output tax due from Person A.
This illustration applies equally to a supply of services, and if there are 2 or more intermediaries in the supply chain between Person A and Person C.
Illustration 3 — Inflation of value of supply
Persons A, B and C are registered under this Act. Person A supplies goods to Person B at a price that includes tax chargeable on the supply. Person B supplies the same goods to Person C at a higher price (to earn a profit margin for Person B) that includes tax chargeable on the supply. Person C exports the goods to an overseas Person D at a price that does not include tax chargeable on the supply to Person D (on the basis that an export of goods would be a zero‑rated supply).
The price charged by Person A to Person B for the goods is grossly excessive because the goods are counterfeit, of a poorer quality than described in the supply, or of a lower quantity than described in the supply.
Person C claims a refund for the input tax paid to Person B and Person B accounts for the output tax on Person B’s supply to Person C (less the input tax paid to Person A). Given the inflated value of the goods, the refund is larger than what would otherwise be given. Person A fails to account for the output tax on Person A’s supply to Person B, and it is not possible to recover the output tax from Person A (for instance, because Person A has little assets).
The arrangement causes loss of public revenue as, firstly, the refund to Person C is excessive, and, secondly, a refund is made to Person C while Person A does not account for the output tax due from Person A.
This illustration applies equally to a supply of services, and if there are 2 or more intermediaries in the supply chain between Person A and Person C.
Illustration 4 — Offsetting input tax against tax
on supplies made in another supply chain
Persons A, B and C are registered under this Act. Person A supplies goods to Person B at a price that includes tax chargeable on the supply. Person B supplies the same goods to Person C at a higher price (to earn a profit margin for Person B) that includes tax chargeable on the supply. Person C exports the goods to an overseas Person D at a price that does not include tax chargeable on the supply to Person D (on the basis that an export of goods would be a zero‑rated supply).
Person C sets off the input tax paid to Person B against the output tax charged on other supplies made to Person E (who is registered under this Act) to reduce the amount of the output tax otherwise payable by Person C to the Comptroller.
Person B accounts for the output tax on Person B’s supply to Person C (less the input tax paid to Person A). Person A fails to account for the output tax on Person A’s supply to Person B and it is not possible to recover the output tax from Person A.
The arrangement causes loss of public revenue as Person C has reduced the amount of the output tax otherwise payable by Person C to the Comptroller when Person C sets off the input tax paid to Person B against the output tax charged on other supplies made to Person E, while Person A does not account for the output tax due from Person A.
This illustration applies equally to a supply of services, and if there are 2 or more intermediaries in the supply chain between Person A and Person C.
Illustration 5 — Assumption of identity of trader
Person A is not registered under this Act. Persons B, C and D are registered under this Act. Person A supplies goods to Person B using Person D’s registration details, at a price that includes tax chargeable on the supply. Person B supplies the same goods to Person C at a higher price (to earn a profit margin for Person B) that includes tax chargeable on the supply. Person C exports the goods to an overseas Person E at a price that does not include tax chargeable on the supply to Person E (on the basis that an export of goods would be a zero‑rated supply).
Person C claims a refund for the input tax paid to Person B and Person B accounts for the output tax on Person B’s supply to Person C (less the input tax paid to Person A).
The arrangement causes loss of public revenue as a refund is made to Person C while Person D does not account for any output tax to the Comptroller since Person D did not actually make the supply of goods to Person B.
This illustration applies equally to a supply of services, and if there are 2 or more intermediaries in the supply chain between Person A and Person C.
TENTH SCHEDULESection 6(9C) and (9D)PRESCRIBED INFORMATION
1. The business registration number of a company
2. The name of a company
3. The prescribed accounting period of a company
4. The revenue of a company in any period, presented in ranges determined by the Comptroller
5. The total value of supplies made by a company in any period, presented in ranges determined by the Comptroller
6. The total value of zero-rated supplies made by a company in any period, presented in ranges determined by the Comptroller