Singapore legislation
Section 39
Section 39
Supplies spanning change of rate, etc.
(1)
This section applies where there is a change in the tax rate in force under section 16 or a change in the descriptions of exempt or zero‑rated supplies, despite any different result that may arise by virtue of the application of sections 11, 11A, 11B and 12.
(2)
Subject to subsections (3) and (7), where, pursuant to a supply of goods or services —
before the change —
in the case of a supply of goods —
if the goods are to be removed, they are removed; or
if the goods are not to be removed, they are made available to the person to whom they are supplied; or
in the case of a supply of services, the services are performed,and, after the change, the invoice is issued or any consideration is received; or
before the change, the invoice is issued or any consideration is received before the change, and, after the change —
in the case of a supply of goods —
if the goods are to be removed, they are removed; or
if the goods are not to be removed, they are made available to the person to whom they are supplied; or
in the case of a supply of services, the services are performed,then the rate at which tax is chargeable on the supply, or any question whether it is zero‑rated or exempt, is, if the person making it so elects, determined at the time when the goods are removed or made available, or the services are performed, as the case may be.
(3)
Where, in relation to an invoice issued before the date an increase in tax rate comes into operation —
before that date, no consideration or only a part of the consideration was received; or
before that date —
in the case of a supply of goods —
if the goods are to be removed, no goods were removed or only a part of the goods were removed; or
if the goods are not to be removed, no goods are made available or only a part of the goods were made available to the person to whom they are supplied; or
in the case of a supply of services, no services were performed or only a part of the services were performed,then the rate at which tax is chargeable on the supply is as follows:
tax is charged at the old tax rate on the higher of the following amounts:
any part consideration received before the date of change;
the value of any goods removed or made available or any services performed (as the case may be) before that date; and
tax is charged at the new tax rate on the amount of the invoice less the amount on which tax is charged at the old tax rate under paragraph (c).
(4)
For the purpose of subsection (3), an invoice referred to in that subsection, on the date the increase in tax rate comes into operation, ceases to have effect to the extent of the amount on which tax is chargeable at the new tax rate under subsection (3)(d).
(5)
Where an invoice that ceases to have effect under subsection (4) is a tax invoice, the person making the supply must issue a new tax invoice specifying —
the new tax rate; and
the amount on which tax is chargeable at the new tax rate under subsection (3)(d),and tax is chargeable on the supply to which the new tax invoice relates as if it were a separate supply.
(6)
Nothing in subsection (2), (3), (4) or (5) affects any tax which (apart from those subsections) is chargeable on a supply to which an invoice referred to in subsection (3) relates, and such tax is accounted for and paid to the Comptroller as if those subsections had not been enacted.
(7)
Where, in relation to an invoice issued before the date a supply ceases to be a zero-rated or an exempt supply —
before that date, no consideration or only a part of the consideration was received; or
before that date —
in the case of a supply of goods —
if the goods are to be removed, no goods were removed or only a part of the goods were removed; or
if the goods are not to be removed, no goods are made available or only a part of the goods were made available to the person to whom they are supplied; or
in the case of a supply of services, no services were performed or only a part of the services were performed,tax is chargeable at the rate applicable on that date on the amount of the invoice less the higher of the following amounts:
any part consideration received before that date;
the value of any goods removed or made available or any services performed (as the case may be) before that date.
(8)
For the purpose of subsection (7), an invoice referred to in that subsection, on the date the supply ceases to be a zero-rated or an exempt supply, ceases to have effect to the extent of the amount on which tax is chargeable under subsection (7).
(9)
Where an invoice that ceases to have effect under subsection (8) is a tax invoice, the person making the supply must issue a new tax invoice specifying —
the tax rate applicable on the date the supply ceases to be a zero-rated or an exempt supply; and
the amount on which tax is chargeable at that tax rate under subsection (7),and tax is chargeable on the supply to which the new invoice relates as if it were a separate supply.
(10)
Regulations made under section 41 may, in relation to any tax invoice which —
relates to a supply in respect of which an election is made under this section and which was issued before the election was made; or
ceases to have effect under subsection (4) or (8),provide for the replacement or correction of that invoice (including the issue of a credit note).
(11)
No election may be made under this section in respect of a supply to which paragraph 6 of the Second Schedule applies.
(12)
For the purposes of this section, where only a part of the goods are removed or made available or only a part of the services are performed (as the case may be), the value of the supply so partly made is such value as is, in the opinion of the Comptroller, reasonably attributable to the supply so partly made.
(13)
In this section —
Definition
“new tax rate” means the tax rate applicable on the date an increase in tax rate comes into operation;
Definition
“old tax rate” means the tax rate applicable immediately before the date an increase in tax rate comes into operation.