When to Charge 0% GST (Zero-Rate)

Key Requirements

For goods, establish at the point of supply that they are or will be exported and retain the required export documents. For services, identify the relevant international-service provision and assess the customer’s belonging status where required. An overseas billing address does not automatically make a local delivery an export, and not every service purchased by a foreign company is zero-rated. Zero-rated supplies remain taxable supplies and are distinct from exempt or out-of-scope transactions. The two linked detailed pages provide the evidence and transaction-specific conditions needed before applying a 0% code.

Classify the Export Arrangement

For goods, identify who has custody and who controls the export arrangement. A direct export involves the supplier having both custody and control. Without either element, the indirect-export rules apply: the starting treatment is standard-rating, with zero-rating possible only where the stated certainty and documentary conditions are met. Delivery to a Singapore customer who plans a later resale overseas does not by itself allow the original local sale to be zero-rated.

IRAS generally allows 60 days from the export time of supply to export the goods and collate the required evidence, with exceptions addressed in its detailed export guide. For this purpose, the time of supply is the earlier of invoice issue and payment receipt. Do not start the evidence timetable only when a freight forwarder eventually sends the shipping documents.

Match the Goods Across the Evidence

Reconcile the purchase order, sales invoice, delivery or packing record, payment evidence and appropriate transport documents against the same shipment. Indirect exports also require the customer’s written delivery instructions where specified. Goods descriptions and quantities must substantiate the export; an overseas customer name cannot repair mismatched documents. Services require a separate international-services analysis rather than this goods checklist. As a practical review, record the precise export scenario and any exception relied on before approving the invoice’s zero-rate code.