Schedule 7

In this Schedule —“customer”, in relation to a supply of digital services, means a person who receives the supply other than —

as a person registered under this Act; and

in the course or furtherance of any business carried on by the person;“electronic marketplace” means a medium that —

allows suppliers to make supplies available to customers by electronic means; and

is operated by electronic means,but not any medium that is solely for processing any payment for any supply;“local underlying supplier”, in relation to a supply of digital services, means a supplier of any digital service that belongs in Singapore and makes the supply through an electronic marketplace;“overseas underlying supplier”, in relation to a supply of digital services, means a supplier of any digital service that belongs in a country other than Singapore and makes the supply through an electronic marketplace.(2) To avoid doubt, in this Schedule, a person that is only the Internet service provider for an electronic marketplace, is not an operator of the electronic marketplace.Meaning of “digital services”2.—

For the purposes of this Schedule, “digital services” means any service supplied over the Internet or other electronic network and the nature of which renders its supply essentially automated with minimal or no human intervention, and impossible without the use of information technology, and —

includes any of the following:

any digital product;

any software or software update;

any image, text or information, or the making available of any database;

any music, film or game;

any distance teaching through any pre-recorded medium or e‑learning;

any website supply, web hosting, or automated or digital maintenance of any programme;

any service providing or supporting a business or personal presence on any electronic network;

any search engine or automated helpdesk service;

any listing service for the right to put goods or services for sale on any online market or auction house;

any live streaming service;

any advertising service on any intangible media platform, where the Comptroller is satisfied that the advertisement is intended to be substantially promulgated in Singapore;

any support service performed, through electronic means, for arranging or facilitating the completion of underlying transactions; but(b)does not include any of the following (except to the extent included under sub-paragraph (a)):

any telecommunication service as defined in the Fifth Schedule to the Goods and Services Tax (International Services) Order that would be treated as a supply of international services under section 21(3)(q) if the supply had been made in Singapore;

any advertising service on any intangible media platform, where the Comptroller is satisfied that the advertisement is intended to be substantially promulgated outside Singapore.(2) The Minister may by order in the Gazette amend sub-paragraph (1).Supplies for purposes of section 8(1A)3.—

For the purpose of section 8(1A), the supply of services is any of the following:

a supply of digital services made or treated as made in the circumstances in sub‑paragraph (2);

a supply of services other than digital services (called in this paragraph non‑digital services), made in the circumstances in sub-paragraph (3).(2) The circumstances for a supply of digital services are any of the following:

the supply is made to a customer who belongs in Singapore, and the taxable person belongs in a country other than Singapore;

the supply is made to a customer who belongs in Singapore, and the taxable person is —

an overseas underlying supplier; or

the operator of an electronic marketplace treated under paragraph 4 as making the supply instead of an overseas underlying supplier;

the supply is a supply mentioned in paragraph 5(3)(b) or 6(2)(b).(3) The circumstances for a supply of non‑digital services are —

the supplier makes or is treated as making a supply of digital services in any of the circumstances in sub‑paragraph (2);

in the course of making the supply of digital services, the supplier makes a separate supply of non‑digital services and that would, but for this sub‑paragraph, not be chargeable to tax;

the supply of non-digital services is ancillary to the supply of digital services; and

upon an application by the supplier, the Comptroller notifies the supplier that the Comptroller is satisfied that the supply of non‑digital services is within sub‑paragraphs (b) and (c).(4) A supplier of digital services or non-digital services under this paragraph must treat a person to whom any such service is supplied as being a customer, unless the person provides to the supplier the registration number allocated by the Comptroller to the person upon the registration of the person under this Act.Supply treated as that of operator of electronic marketplace4.—

For the purpose of paragraph 3(2)(b)(ii), an operator of an electronic marketplace is treated as making the supply of digital services to a customer instead of the overseas underlying supplier making the supply through the electronic marketplace of the operator, if any of the following conditions is satisfied:

the operator authorises the consideration for the supply to be charged to the customer;

the operator authorises the delivery of the supply to the customer;

the operator sets the terms and conditions under which the supply is made;

the documentation provided to the customer identifies the supply as being made by the operator;

the operator and the overseas underlying supplier have agreed in writing that the operator is chargeable to tax on such supply.(2) If more than one operator of an electronic marketplace is treated under sub-paragraph (1) as making the supply of digital services —

the first operator that authorises the charging of or receives consideration for the supply is treated as making the supply; and

if no operator exists that meets the requirement in sub-paragraph (a), then the first operator that authorises delivery of the supply is treated as making the supply.(3) For the purposes of this paragraph —

an operator authorises the charging of consideration for a supply of digital services where it influences whether, at what time, or under which preconditions the customer can make payment for the supply of digital services; and

an operator authorises the delivery of a supply of digital services where it influences whether, at what time, or under which preconditions the delivery is made.(4) This paragraph applies whether or not the operator of the electronic marketplace is a supplier of digital services that belongs in Singapore.Elected supplies of operator of electronic marketplace5.—

Subject to such conditions as the Comptroller may impose, an operator of an electronic marketplace to which paragraph 4 applies may elect to also be chargeable to tax on all supplies of digital services made by local underlying suppliers through the electronic marketplace to customers who belong in Singapore.(2) An election made under sub-paragraph (1) must be made by notifying the Comptroller in such form and manner and within such time as the Comptroller may require.(3) Where an election under sub-paragraph (1) has been made in accordance with sub‑paragraph (2), then a supply of digital services made by a local underlying supplier through the electronic marketplace to a customer who belongs in Singapore is treated as being 2 supplies, namely —

a supply of services from the local underlying supplier to the operator of the electronic marketplace; and

a supply of digital services by the operator of the electronic marketplace to the customer who belongs in Singapore.(4) Where the operator of an electronic marketplace belongs in a country other than Singapore, then the supply of services mentioned in sub-paragraph (3)(a) is treated as a supply of services that are international services under section 21.Supplies to registered persons allowed to be treated as that of operator of electronic marketplace6.—

Subject to any conditions imposed by the Comptroller, the Comptroller may, at the request of an operator of an electronic marketplace that belongs in Singapore, grant approval for the operator to be chargeable to tax on the following supplies:

for an operator without an election made under paragraph 5(1) — supplies of digital services made by any overseas underlying supplier through the electronic marketplace to a registered person;

for an operator with an election made under paragraph 5(1) — supplies of digital services made by any overseas underlying supplier or any local underlying supplier through the electronic marketplace to a registered person.(2) Where the operator is granted approval under sub-paragraph (1), then a supply mentioned in that sub‑paragraph of digital services made by an overseas underlying supplier or a local underlying supplier (as the case may be) through the electronic marketplace to a registered person is treated as being 2 supplies, namely —

a supply of services from the overseas underlying supplier or local underlying supplier to the operator of the electronic marketplace; and

a supply of digital services by the operator of the electronic marketplace to the registered person.[52/2018; 33/2019]