Clause 13

This section applies in the following circumstances:

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 for the purposes of any business carried on by the recipient; 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;

the recipient is not entitled to claim the full amount of input tax credit 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.(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 supplied the service in Singapore in the course or furtherance of his business, 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 his case under section 20(1).(5) A recipient that is not within subsection (1)(b) may elect to be treated as a recipient to whom subsection (2) applies.(6) Where a recipient under subsection (2) also receives any service that is excluded or that is to any extent excluded under the Eighth Schedule, which services are supplied to the recipient by a person or branch mentioned in subsection (1)(a), the recipient may elect for the supply of the service to be a supply of services to the recipient under subsection (1)(a).(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.”.