Singapore legislation
Clause 21
Clause 21
New section 92A
The principal Act is amended by inserting, immediately after section 92, the following section:“Temporary arrangements for Seventh Schedule supplies: distantly taxable goods and new services92A.—
Where an agreement provides (expressly or impliedly) for a new Seventh Schedule supply of services to be performed progressively and continuously over a period, then —
if the agreement was made before 16 February 2021 — tax is not chargeable on the supply; and
if the agreement was or is made on or after 16 February 2021 but before 1 January 2023 — tax is chargeable on the supply to the extent that the services are performed on or after 1 January 2023.(2) Subject to subsection (1), where an invoice for a new Seventh Schedule supply of services was or is issued on or after 16 February 2021 but before 1 January 2023, tax is chargeable on the supply to the extent of —
the amount of the invoice received on or after 1 January 2023; or
the value of the services to which the invoice relates that are performed on or after 1 January 2023, if lower.(3) Subsection (2) does not apply if the whole amount of the invoice is received, or the whole of the services is performed, before 1 January 2023.(4) Where an invoice for a Seventh Schedule supply of goods was or is issued on or after 16 February 2021 but before 1 January 2023, tax is chargeable on the supply to the extent of —
the amount of the invoice received on or after 1 January 2023; or
the value of the goods to which the invoice relates that were removed or made available to the person to whom they are supplied on or after 1 January 2023, if lower.(5) Subsection (4) does not apply if the whole amount of the invoice is received, or the whole of the goods is removed or made available to the person to whom they are supplied, before 1 January 2023.(6) Subject to subsection (1), where an invoice for a new Seventh Schedule supply of services is issued on or after 1 January 2023 —
tax is chargeable on the supply to the extent of the amount of the invoice received on or after that date; but(b)the taxable person may elect for the tax to be chargeable only to the extent of the value of the services that are performed on or after that date, if lower.(7) Subject to subsection (1) and despite subsection (6), where an invoice for a new Seventh Schedule supply of services is issued on or after 1 January 2023 but before the day on which the person making the supply is registered in accordance with the First Schedule —
tax is chargeable on the supply to the extent of the amount of the invoice received on or after the day on which the person making the supply is registered in accordance with the First Schedule; but(b)the person may elect for the tax to be chargeable only to the extent of the value of the services that are performed on or after 1 January 2023, if lower.(8) Subsections (6) and (7) do not apply if the whole amount of the invoice is received, and the whole of the services is performed, on or after 1 January 2023.(9) Where an invoice for a Seventh Schedule supply of goods is issued on or after 1 January 2023 —
tax is chargeable on the supply to the extent of the amount of the invoice received on or after that date; but(b)the taxable person may elect for the tax to be chargeable only to the extent of the value of the goods that are removed or made available to the person to whom they are supplied on or after that date, if lower.(10) Despite subsection (9), where an invoice for a Seventh Schedule supply of goods is issued on or after 1 January 2023 but before the day on which the person making the supply is registered in accordance with the First Schedule —
tax is chargeable on the supply to the extent of the amount of the invoice received on or after the day on which the person making the supply is registered in accordance with the First Schedule; but(b)the person may elect for the tax to be chargeable only to the extent of the value of the goods that are removed or made available to the person to whom they are supplied on or after 1 January 2023, if lower.(11) Subsections (9) and (10) do not apply if the whole amount of the invoice is received, and the whole of the goods is removed or made available to the person to whom they are supplied, on or after 1 January 2023.(12) Tax chargeable —
under subsection (1) for any services under subsection (1)(b) that are covered by an invoice issued or consideration received before 1 January 2023; or
under subsection (2) or (4),must be accounted for in the return for the accounting period in which the later of the following falls:
1 January 2023;
the day on which the person making the supply is registered in accordance with the First Schedule.(13) Tax chargeable under subsections (6) and (9) must be accounted for in the return for the accounting period in which the earlier of the following falls:
the invoice for the new Seventh Schedule supply of services or Seventh Schedule supply of goods (as the case may be) is issued;
the consideration for the amount of the invoice is received by the supplier.(14) Tax chargeable under subsection (7) or (10) must be accounted for in the return for the accounting period in which the consideration for the amount of the invoice is received on or after the day on which the person making the supply is registered in accordance with the First Schedule.(15) For the purposes of this section, where, as the case may be —
only a part of the services under a new Seventh Schedule supply of services is performed; or
only a part of the goods under a Seventh Schedule supply of goods is removed or made available to the person to whom they are supplied,then the value of the part is a value that is, in the opinion of the Comptroller, reasonably attributable to the part.(16) This section applies despite anything in —
section 11, 11A, 11B or 12; or
section 39 (to the extent that the section provides for changes in the description of Seventh Schedule supplies).(17) For the purposes of paragraphs 1(1)(b) and (2)(b) and 1A(1)(b) and (2)(b) of the First Schedule, references to taxable supplies and Seventh Schedule supplies of a person do not include any Seventh Schedule supplies of goods or new Seventh Schedule supplies of services of the person that take place before 1 January 2023.(18) For the purposes of paragraphs 1(2)(a)(ii) and 1A(2)(a) of the First Schedule in relation to a business transferred before 1 January 2023, references to taxable supplies and Seventh Schedule supplies of the transferee do not include any Seventh Schedule supplies of goods or new Seventh Schedule supplies of services of the transferee that take place before 1 January 2023.(19) In this section, “new Seventh Schedule supply of services” has the meaning given by section 91(4).”.