Singapore legislation
Section 14
Section 14
Reverse charge on supplies received from abroad
(1)
This section applies where —
services are —
supplied by a person who belongs in a country other than Singapore, and received by a person (called in this section the recipient) who —
belongs in Singapore;
is a registered person, or is not a registered person but is liable to be registered under paragraph 1 or 1B of the First Schedule; and
is not receiving the services as an individual in the private or personal capacity of the individual; or
supplied by a branch of a person in a country other than Singapore through which the person carries on any business, and received by a branch of the person in Singapore through which the person (called in this section the recipient) carries on any business; and
the recipient is not entitled to credit for the full amount of the recipient’s input tax under sections 19 and 20 for the prescribed accounting period or longer period mentioned in section 20(4)(b) in which the services are received.
(1A)
Subsection (1)(b) does not apply in relation to any input tax excluded by regulations made under section 19(14) from any credit under section 19.
(2)
Subject to subsections (3) and (4), all the same consequences follow under this Act (and particularly so much as charges tax on a supply and entitles a taxable person to credit for input tax) as if the recipient had himself, herself or itself supplied the service in Singapore in the course or furtherance of a business for that supply, and that supply were a taxable supply.
(3)
Subsection (2) applies to the extent that the services are not excluded under the Eighth Schedule (for the purposes of subsection (1)(a)(i) and (ii), or (1)(a)(i), or (1)(a)(ii), as the case may be).
(4)
Reverse charge supplies are not to be taken into account as supplies made by the recipient when determining the allowance of input tax in the recipient’s case under section 20(1).
(5)
Where a recipient who is a registered person is not within subsection (1)(b), the recipient may elect for all supplies to the recipient made in the circumstances under subsection (1)(a) to be treated as supplies of services to which subsection (2) applies (despite subsection (1)(b) not applying).
(6)
Where a recipient who is a registered person receives any supply of services excluded or to any extent excluded under the Eighth Schedule that is made by a person mentioned in subsection (1)(a), the recipient may elect for all such supplies of services to be received by the recipient to be treated as supplies of services to which subsection (2) applies (and not supplies to which subsection (2) does not apply by reason of subsection (3)).
(7)
An election under subsection (5) or (6) must be made in the form and manner, and within the time, required by the Comptroller.
(8)
For the purposes of this section, a head office of a taxable person is treated as a branch of that taxable person.
(9)
The Minister may make regulations to provide for the circumstances in which subsection (2) does not apply despite subsection (1)(a)(ii) and (b) being satisfied.
(10)
The Minister may by order amend the Eighth Schedule.